|
|
|
|
|
The Privatisation Commission is considering the proposal to increase the
percentage of shares for the upcoming Initial Public Offering (IPO) of
Pakistan Petroleum Limited (PPL) and Kot Adu Power Company (KAPCO) to
accommodate maximum number of smaller applicants and to further broadening of
the ownership base, deepening and strengthening the Stock Market. It was
discussed in a meeting under the chairmanship of Mr. Salim Gul, Federal
Secretary Ministry of Privatisation here today.
The meeting was informed that the proposal was being reviewed in view of the
recent secondary public offering of SSGC shares, which set new historic record
of participation of more than 2,50,000 smaller applicants and due to the size
of the offer only 67,000 smaller applicants were accommodated through
balloting even after exercising the green shoe option. In order to implement
the government's policy to pass on the benefits of privatisation to the common
man and to give preference to smaller applicants, the proposal will be
considered in the next meeting of the Board of Privatisation Commission.
The meeting was also informed that the privatisation of United Bank Limited
after the transfer of management control to the private sector have started
yielding results for the national exchequer after the announcement of dividend
by the new management. For the first time since nationalization in 1974 and
just over a year following privatisation, UBL declared a dividend of
Rs.1,165,500,000/- @ Rs.2.25 per share. The government will receive
Rs.571,095,000/= for its 49 % shareholding in the bank.
It was mentioned that prior to the privatisation of UBL, the government
injected Rs.28.9 billion into UBL between 1997 and 2002 against which it
received shares for the said amount in order to make UBL compliant with the
capital adequacy requirements as prescribed by the State Bank of Pakistan and
applicable to all commercial banking institutions operating in Pakistan.
The meeting also reviewed the progress and the present status of Faisalabad
Electric Supply Company (FESCO), Jamshoro Power Company (JPC), Pakarab
Fertilizers Limited and other upcoming entities.