NBP SHARES OVER SUBSCRIPTION AMONUT REFUNDED

Islamabad, November 06, 2003

The amount received in excess of Rs. 604 million for the third Public Offer of 13.1 million shares of National Bank of Pakistan (NBP) has been refunded to the applicants. Privatisation Commission received applications worth Rs. 1.22 billion, which was double the required amount in response to its offer to the general public. Subscription for this issue was scheduled during October 13-15, 2003.

The government offered 13.13 million shares of NBP to the public at a price of Rs.46/= per share. Applications were invited in lots of 500 shares or multiples thereof. Preference for allocation was given to the smaller applicants for 500 shares. The remaining shares have been allocated to applicants on prorata basis.

The government is presently making an Initial Public Offering of OGDCL, Public Offerings of SSGC and PIAC. IPOs of PPL and KAPCO will follow in a well-sequenced program. PC realized Rs. 6 billion plus through the divestment of small number of shares of POL, ARL and DG Khan Cement in the early months of the newly elected government, which was a record performance and also indicative of market appetite.

The divestment of GoP shares in Public sector entities through Capital Market is not only a very transparent mode of privatisation but it also fulfills the Government's firm commitment to transfer the benefits of privatisation to the common man and to make a significant increase in the market capitalization and further broaden the base of ownership.