India's school chain fetches USD1B - where are Pakistani counterparts?

Listed companies in Pakistan are at massive disadvantage.

Now that is what you call success stories. Expanding the business chain across 350 cities with prime focus on preschool and early school education. When the economy is growing, population is expanding and purchasing power of people is increasing, business are ripe to flourish. But that requires focus and determination. Pakistani chains should learn a thing and two.

A few years ago, City School was speculated to be considering the idea of floating on stock market. The likes of Beaconhouse, Foundation School and other chains of Pakistan are strong contenders. But why on earth would they want to go public? When tax rates are higher, regulatory requirements are stringent and public scrutiny is cynical - there are reasons NOT to list. Plus, earnings profits in Pakistan appears to be a "crime".

Yes, currently valuations may not fetch more than 5-7x P/E - that too on an unsustainably absurd three historical years of growth designed to "ready the books" for public listing - sponsors are wary to sharing the stake with others. That's a closed mindset. By getting experts on the board, partnering with global experts and sharing with public minority shareholders, sponsors do eventually win, so does the public and exchequer.

Pakistani policy makers would happily offer amnesty - even for real estate - considering that as job creating avenue but listed companies are unfairly penalized. No wonder than corporate world is at the receiving end. Do not forget that countries thrive with private sector creating jobs and enhancing skillset in the economy. Let's hope capital markets in Pakistan one day become beacon of success.

https://www.bloomberg.com/news/articles/2024-03-15/kkr-said-to-weigh-1-billion-sale-of-india-school-chain-eurokids