December 11, 2025 (MLN):  Pak-Qatar Family Takaful Limited (PQFTL) shares are projected to reach Rs23 per share by December 2026, a strong growth prospects for the company in Pakistan’s takaful sector.

Ismail Iqbal Securities Pvt Ltd has recommended a ‘BUY’ stance on the IPO, hints  to subscribe up to Rs17.75 per share.

The brokerage expects PQFTL’s profit after tax (PAT) to grow at a 6-year CAGR of 22% starting CY24, supported by cost efficiencies and expansion of direct sales.

Over the past three years, PQFTL has delivered steady growth in net income and PAT, driven by single-contribution products that accelerate asset accumulation and maintain the industry’s lowest acquisition costs at 5% in FY24.

The company also became the first takaful operator in Pakistan to obtain a Voluntary Pension Scheme (VPS) license in 2022, enhancing its long-term growth potential, the brokerage reported.

The IPO will issue 50 million shares, a 21.67% of post-IPO capital, at a floor price of Rs14 per share.

Arif Habib Limited is appointed as Lead Manager.

75% of shares will go to successful bidders and 25% to retail investors, with unsubscribed retail shares redistributed among other bidders. The Dutch auction method will be used for pro-rata allocation.

Proceeds from the IPO will focus on digital expansion, with 30% allocated to hiring new sales and digital staff and 24% for technology upgrades, including an in-house banca system and enhanced partner portal.

The company also aims to meet SECP’s minimum paid-up capital requirements of Rs 2,200 million by 2028 and Rs3,000 million by 2030.

Founded in 2006, PQFTL is Pakistan’s first and largest dedicated Family Takaful operator, holding a 44% share of the overall family takaful market and 90.47% of the dedicated segment.

The company has pioneered Islamic insurance innovation through products like the ‘Mahana Bachat Takaful Plan’ and a strong nationwide distribution network.

Potential risks include cash flow pressures, lower investment income, higher claims, regulatory changes, and increased reinsurance costs or counterparty failures.

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