Initial Public Offering (IPO) of Synergy Drinks Ltd in Pakistan
Ahmed liked to keep abreast with financial news in the country. One afternoon when he was going through his routine practice of reading business news in the Express Tribune, the heading of â€˜IPO by Synergy Drinks Ltdâ€™ caught his attention. As an independent company, the shares of Synergy Drinks were to be listed on the Pakistan Stock Exchange (PSX). In his MBA course â€˜Financial Institutions and Capital Markets' Ahmed was introduced to the Dutch Auction method (DAM); however never had he experienced how this actually takes place. As a keen finance student, he always had his finger on the pulse and was avid for knowledge on how under the Dutch Action Method, the strike price is determined. This time, he was quite enthused to witness the live feed of IPO activity; therefore, decided to visit the exchange and witness himself. The next day he found himself in the midst of hundreds of traders shouting out prices, chaotically making wild hand gestures at the exchange!