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The Initial Public Offering (IPO) for sale of the shares of Oil & Gas
Development Company Limited (OGDCL) will increase the market capitalization by
at least Rs. 137.6 billion, which is more than US $ two billion thus
increasing the capitalization to about US $ 20 billion.
This was stated by the Federal Minister for Privatisation & Investment Dr.
Abdul Hafeez Shaikh while addressing the first presentation to the investors
for the Initial Public Offering (IPO) of 2.5 % shares (107.5 million shares)
of Oil & Gas Development Company Limited (OGDCL) with a green shoe option of
additional 2.5 % shares held here today under the auspices of Privatisation
Commission and the Lead Manager to offer for sale of the Initial Public
Offering (IPO) of OGDCL shares KASB Securities.
He said that it was the largest listed company in the stock market after PTCL,
which would add significant depth to the Stock Market. Also being the second
Exploration & Production Company listing in Pakistan had already generated
huge interest, which was targeted by the end of this month, the Minister said.
He added that realizing Rs. 6 billion plus through the divestment small number
of shares of POL, ARL and DG Khan Cement in the early months of the newly
elected government was a record and we were looking eagerly to implement this
strategy, which was the most transparent way of privatisation and which would
further develop the market and broaden the base of ownership. Preference would
be given to all the smaller applicants of 1000 shares in OGDCL and 500 shares
in NBP, he stated and hoped that NBP's 3.2 % shares would fetch about half
billion Rupees.
He further stated that in a well sequenced program this process would continue
by the end of the current calendar year, which included offer of sale of
shares of SSGC and PIAC. The further divestment of the shares of the public
sector entities for the first quarter of 2004 would be announced accordingly,
which will include IPO of KAPCO and PPL, he said.
The Minister said that we were progressing ahead with the privatisation
process of PSO, HBL, NITL, FESCO, JPC, Thatta Cement and Hyatt Regency Hotel
Project all to be completed within this year.
Addressing on this occasion a reoresentative of Petroleum & Natural Resources
Mr. Naeem Baig, Joint Secretary said that the government was endeavoring to
open up this sector by giving complete autonomy to the public sector companies
like OGDCL, which enjoyed fully authority management with independent Board of
Directors. OGDCL has generated additional revenues and its profits have also
increased, he added. He further stated that the Ministry of Petroleum &
Natural Resources has started the deregulation of Oil & Gas Industry by
supporting the autonomy to the public sector entities, linking the petroleum
products prices to the international market and facilitating the efforts of
Privatisation Commission to accomplish its targets.
The Chairman OGDCL Mr. Afzal Khan said that OGDCL had last year contributed Rs.
33 billion to the national exchequer, which proved it as a mature company and
its exploration activity had now been accelerated, he added.
Mr. Najam Kamal Hyder, MD, OGDCL said that while having aggressive exploration
plan and increase in company's production and profits with low operating cost
OGDCL was also the major producer of LPG along with substantial contribution
to the Oil and Gas production. He urged the investors to come forward to
participate in the future of Pakistan by subscribing to the OGDCL shares.
Mr. Ahmad Waqar, Secretary Privatisation Commission while replying to a
question said that the Financial Advisor for OGDCL had started soft marketing
for the strategic sale of OGDCL as a parallel strategy, which would be cleared
by the end of the year, which would be followed by inviting fresh EOIs for the
strategic sale of the company.
Earlier, Mr. Azhar Iqbal Resident Manager of KASB Securities, the Lead
Managers for offer of sale of OGDCL shares gave a detailed presentation
highlighting the profile and salient features of the company and informed that
the offer had been fixed for Rs. 32 per share to be offered through Karachi,
Lahore and Islamabad Stock Exchanges. All Pakistanis were eligible for
acquiring the stakes in OGDCL by applying for a minimum 1000 shares with a
smaller investment of Rs.32000 only, who would be given preference, he
informed the participants. The Lead Manager as also scheduled presentation at
Lahore on October 15, 2003 to be followed by presentations at Gujarnawala,
Faisalabad, Mirpur, Peshawar and Quetta.
The Cabinet Committee on Privatisation (CCOP) had given approval to the
initial public offering (IPO) of 2.5 % shares of Oil & Gas Development Company
Limited (OGDCL) at a price of Rs.32 per share with a green shoe option of
another 2.5 % shares. The divestment of shares through Stock Exchange would
help in broadening and deepening the stock market and to transfer the benefits
of privatisation to the common man in the most transparent way.