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The historic success of the Initial Public Offer (IPO) of 2.5 % shares of
OGDCL (107.5 million shares), which had received overwhelming response from
the general public and institutional investors and was heavily over subscribed
and its induction in the KSE 100 Index is being celebrated in a ceremony being
held under the auspices of the Lead Manager to the offer KASB Group at
Islamabad on April 16, 2004. Dr. Abdul Hafeez Shaikh, Federal Minister for
Privatisation & Investment and Chaudhary Nouraiz Shakoor, Federal Minister for
Petroleum & Natural Resources will be the Chief Guests.
The government exercised the green shoe option for additional offer of 2.5 %
shares of OGDCL due to the substantial and record subscription in the issue.
The offer had been oversubscribed by more than seven times attracting an
amount of more than Rs. 28 billion due to heavy support from both, individual
as well as institutional investors. The amount of subscription received has no
parallel in the history of the local stock market. The offer size as well as
the subscription received had made the transaction the largest and most
successful pubic offering to date.
The formal listing of OGDCL shares on the Stock Market from January 19, 2004
has increased market capitalization by more than Rs. 220 billion, which
translates to about US$ 3.8 billion. In terms of volume, it has been the
highest traded stock during the last few sessions, which shows the interest,
generated by the share in the market. The OGDCL share is sure to make a place
in the KSE-100 Index in its next revision and will continue to be one of the
most heavily traded stocks in the market keeping in view the float available
with common investors.
The listing of OGDCL is a big step towards the deepening and broadening of the
stock markets and the heavy response from investors gave a clear indication of
the excess liquidity available. An encouraging factor for the markets in this
instance was the participation of all categories of individual investors,
including housewives and pensioners, a large proportion of them were first
time investors for whom this investment was a learning experience and many of
these investors might continue to invest in the stock market increasing the
investor base significantly. It is the basic desire of the government to make
the people of Pakistan the real owners of mega entities and for this purpose
after OGDCL IPO and Secondary Public Offering of SSGC shares, the IPO of PPL
and KAPCO and Public Offering of PIAC shares will soon be offered.
Overall, the listing and offer for sale of OGDCL has been a landmark
transaction for the capital markets. The investor response has clearly
indicated the market appetite for good investment opportunities and bodes well
for future offers for sale of high performance companies.
As per final figures received from the Bankers to the Offer, a total of 97,570
applications were received from the general public amounting to PKR
28,120,780,585. All applications have been accommodated initially for 1,000
shares each and the balance of shares have been allotted on a pro-rata basis
to all applicants who applied for shares in multiples of 1,000 shares.