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Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment
and Chaudhary Nouraiz Shakoor, Federal Minister for Petroleum & Natural
Resources will address the success ceremony on April 16, 2004 (Friday Evening)
at Islamabad being held to celebrate the historic success of the Initial
Public Offer (IPO) of 2.5 % shares of OGDCL (107.5 million shares), which
received overwhelming response from the general public and institutional
investors and was heavily over subscribed. The ceremony is being organized
under the auspices of the Lead Manager to the offer KASB Group.
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.
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.
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.