PC FOCUSING MORE IPO & PO AFTER NBP - OGDCL says Ahmad Waqar-Secretary PC

Islamabad, October 8, 2003

The government is committed to the transparent process of privatization, continuity in the economic policies, strengthening, broadening and deepening of the capital market.

Mr. Ahmad Waqar, Secretary Privatisation Commission stated this while  addressing the presentation to Karachi Stock Exchange (KSE) members for the third offer for sale of 3.2 % shares of National Bank of Pakistan (NBP) here today.

He hoped that the third offer for sale of NBP shares, targeted next week,  would also be over subscribed as witnessed in the earlier two offers. PC was also focusing on more Initial Public Offering (IPO) and Public Offering (PO) of the public sector entities being listed in future, he said.

Mr. Ahmad Waqar added that KSE remained the main supporter in the success of PC Program. The NBP share were being offered on discounted rates, the CCOP had interalia decided that the offering price for 3.2 % shares of the bank being offered to the general public on best effort basis, be fixed at 5 % discount to the prevailing market price, he informed.

The market price of bank's share as on September 23, 2003 was Rs. 48. 50. The final offer price was fixed at Rs. 46/= by allowing a 5 % discount to Rs. 48. 50 and rounding off to the nearest Rupee value. The break-up value of the bank's share as at June 30, 2003 is Rs. 51/ 52, excluding surplus on revaluation of fixed assets but including surplus on revaluation of investment. Based on profitable operations, the bank announced a 12. 5 % cash dividend and 10 % bonus shares on May 13, 2003, which relate to the financial year, ended December 31, 2002.

All Pakistani residents, Provident Funds/ Trust, Pension/ Gratuity Funds, (subject to the terms of their trust deeds), and corporate entities (to the extent permitted by their constitutive or corporate documents, as the case may be) are allowed to subscribe to the shares offered to the general public. According to the clause (110) of part-1 of second schedule of income tax ordinanace, 2001, capital gains derived from the sale listed securities
are not liable to income tax at present. The exemption is currently available up to tax year ending June 30, 2005.

The President NBP S. Ali Raza gave an over view of the Banks performance and future plans and detailed the success stories and achievements through financial performance. The PC Consultant Syed Faiz Jalal and the Lead Manager Elixir Securities Pakistan (Pvt) Ltd and Taseer Hadi Khalid and Co, Chartered Accountants also highlighted the salient features of the transaction. The KSE members largely attended the presentation.