A day earlier on March 26, 2024 the Board of Directors of Pakistan International Airlines Corp (PSX: PIAA) has green-lit the company’s ambitious restructuring and privatisation plan. The Scheme of Arrangement (SOA) for this strategic overhaul received unanimous approval during PIA’s 83rd meeting held on March 25, 2024. Subsequently, the Board will initiate the process by filing the modalities with the Securities and Exchange Commission of Pakistan.
MARKET RESPONSE
Amid the government’s concerted efforts to restructure and privatize the loss-making airline, PIAA’s stock has witnessed a relentless rally, surpassing its record highs. Despite recent bouts of volatility, the stock price has surged significantly, marking a remarkable uptrend. The market response underscores investor confidence in the transformative potential of PIAA’s restructuring and privatization endeavors.
INTERNATIONAL INVESTOR INTEREST SOARS
March 27, 2024 – In a rather noteworthy development, seven international investors, including Germany, France, Netherlands, Qatar, UAE, Malaysia, and Turkiye, have expressed keen interest in Pakistan International Airlines (PSX: PIAA). This influx of international interest, coupled with local groups’ participation, highlights the global resonance of PIAA’s restructuring and privatization initiative.
GOVERNMENT INITIATIVES TO FACILITATE INVESTOR ENGAGEMENT
Federal Minister for Defence, Defence Production, and Aviation, Khawaja Muhammed Asif, chaired a pivotal meeting on the outsourcing of airports and privatization of PIAA. The minister emphasized proactive engagement with interested international and local groups, directing Pakistani Ambassadors to facilitate country-specific briefings. Additionally, efforts are underway to connect local investors with international counterparts, fostering consortium development and enhancing participation in the bidding process.
ENGAGING WITH POTENTIAL INVESTORS
The Privatization Commission Secretary, Usman Akhtar Bajwa, briefed the minister on the marketing plan and preliminary engagements with international investors. Plans are underway for ministerial visits to key countries to actively engage with potential investors and expedite government-to-government level discussions. These initiatives aim to accelerate the privatization process and attract the most qualified investors to participate in reshaping PIAA’s future.
RESPONSE IN THE STOCK MARKET
Despite recent market volatility, PIAA’s shares surged by 7.5% in today’s trading session. Over the past year, the stock has witnessed a significant surge, reflecting investor optimism in PIAA’s strategic direction and future prospects. The year-to-date (YTD) increase further underscores the market’s positive sentiment towards PIAA’s restructuring and privatization journey.
