|
|
|
|
|
The Initial Public Offering (IPO) for sale of the shares of Oil & Gas
Development Company Limited (OGDCL) in early November 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 OGDCL would be the largest listed company in the stock market
after PTCL, which would add significant depth to the Stock Market and fetch
about Rs. 6.9 billion. Also being the second Exploration & Production Company
listing in Pakistan had already generated huge interest and had become an
important and exciting transaction, the Minister said.
He added that realizing over Rs. 7 billion through the divestment small number
of shares of POL, ARL and DG Khan Cement in the early months of the government
was a record and we were looking eagerly to implement this strategy, which was
the very transparent way of privatisation, which would further develop the
market and broaden the base of ownership and it was the only effective mode to
transfer the benefits of privatisation to the common man from the lower class
with average income. Preference would be given to all
the smaller applicants of 1000 shares in OGDCL, he stated. The
oversubscription witnessed in the public offering of NBP's 3.2 % shares was a
good sign where applications worth Rs. 1.21 billion plus were received against
the required amount of Rs. 604 million, he said.
He further stated that to take advantage of the liquidity in the market this
process would continue through a well-sequenced program with interims keeping
in view the market capacity, which included offer of sale of shares of SSGC,
PIAC and Initial Public Offering (IPO) of KAPCO and PPL, he said.
The Minister said that we were progressing ahead with the strategic sales of
PSO, which was at an advance stage, HBL, which attracted several international
and Pakistani groups and would eliminate the possibilities of political
patronage. Pakarab Fertilizers, Jamshoro Power Company, FESCO, NITL Mutual
Fund, Hyatt Regency Hotel Project and Flatti's Hotel were among the up coming
transactions, he added.
Dr. Hafeez Shaikh further stated that the deregulation phase was over the
privatisation process of Pakistan Telecommunication Company Limited (PTCL)
would be accelerated. We should try to take things on face value, we want to
remain transparent by communicating facts to the people, therefore, our
intentions and efforts should be trusted as weendeavor to complete our task on
time, the Minister said.
Addressing on this occasion Mr. M Abdullah Yusuf Secretary Petroleum & Natural
Resources said that the government was endeavoring to open up Oil & Gas sector
by giving complete autonomy to the public sector companies, paving the way for
a market environment for encouraging investments, brought independent
regulators and to focus interest of the investors. OGDCL had the potential to
grow in view of its exploration and production activity and discoveries, which
were yet to go on stream.
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 acquiring new technologies to run the company on commercial
lines. 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 Informed the audience that
the Financial Advisor for OGDCL had started soft marketing for the strategic
sale of OGDCL as a parallel strategy.
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, which represented the premium
of Rs. 22 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 minimum 1000 shares with a smaller investment of Rs.32000 only,
who would be given preference, he informed the participants.
Mr. Azhar Also detailed the organizational and corporate structure of the
company and added that OGDCL had a natural growing market.