KARACHI - Contrary to last year when only 4 fresh offerings were floated, the local bourse has witnessed 8 offerings worth Rs4.3 billion in the current fiscal year compared to 4 IPOs of Rs1.4 billon last year. Amongst the 8 IPOs in FY10, two each, belonged to the power generation and fertilizer sectors, whereas the others were from the chemical, construction, textile and telecom sectors. The green shoe option of Rs900 million of Wateen Telecom was also taken place during FY10. It is interesting to note that 3 of the mentioned IPOs (Ghani Gases, Fatima Fertilizer and Amtex) were offered through the book building process, raising an additional Rs2.7 billion. The said process is one through which an underwriter attempts to determine the offer price of an IPO, based on demand from institutional investors. Though, 6 of the issues were oversubscribed, under subscription of Nishat Chunian Power and Agritech dragged the average subscription down to 0.9 times. Historically, FY04 and FY05 were the best years for IPOs when 11 (Rs60bn) and 14 (Rs58bn) new issues respectively, were floated in the market. According to JS Research, with the fiscal year 2010 left with 8 trading sessions only, it is worthwhile to note that the benchmark KSE-100 index has posted a return of 35 per cent, outperforming the region by 12 per cent so far. The bourses average daily volumes too have improved by 13 per cent (excluding price floor period) to date in this period. This being evident from the fact that put together they were subscribed by a mere average of 0.9 times, although slightly higher than last years average of 0.6 times but lower than historical average (FY04-07) of 4 times. JS Report sees that strong market performance of +35 per cent in FY10 to date, gradual reversals in macro economic imbalances and tax incentives provided in the budget FY11 should provide a suitable setting for fresh issues in the coming year.