OVERWHELMING & ANOTHER RECORD MAKING SSGC SHARE OFFERING RESPONSE CONFIRMS PEOPLES CONFIDENCE IN GOVERNMENT POLICIES Says Hafeez Shaikh

Islamabad, February 19, 2004

Dr. Abdul Hafeez Shaikh, Federal Minister for Privatisation & Investment, while terming the 15 time oversubscribed response as overwhelming and a record after the OGDCL IPO, said that it also confirmed the peoples' confidence reposed in the economic policies of the Government.

He said that the SSGC success also testified that the benefits of privatisation were being transmitted to the small investors and the common man. The Government was determined to ensure the betterment of the people and the country, he added.

Dr. Hafeez Shaikh said that the more than 250,000 applications (worth Rupees  13 billion) were never witnessed in the history of public offering in the  country in any of the previous transactions. The highest ever number of applications received earlier was 97,570 for the OGDCL IPO. We would continue to divest the GoP shares in Public sector entities with a focused preference to the general public, being the real heirs, giving them their share of ownership in the national assets, he stated.

He said that the response from small investors, particularly from applicants for 1,000 shares, was highly commendable and encouraging. This would help the government in realizing its objectives of developing the capital markets and such a significant increase in the number of investors would also help to further deepen, broaden and strengthen the base of the stock market, he added.

He further stated that the Privatisation Commission was all set to offer shares of PIA, PPL, KAPCO and UBL to the general public in a well-sequenced manner and with proper spacing. We were taking all such steps which were considered best in the largest interest of the country and the nation and he added that there was no compulsion or pressure on us from any side and we were going ahead with our privatisation program smoothly to make the public sector entities efficient by bringing in quality players through a competitive and transparent process.

The Minister said that Pakistanis within or outside the country enjoyed equal opportunities to get the benefits of privatisation and all bottlenecks would be removed if faced by the general public in the recent SSGC offering to further facilitate the people in the upcoming public offerings of the State entities, he said.

Balloting to determine the successful applicants would be held on February 23, 2004. Keeping in view the number of applicants for 1,000 shares, balloting would be restricted to only this category of applicants.

Refunds to unsuccessful applicants will be completed by March 02, 2004. Such  refunded money shall be credited to the bank accounts of unsuccessful  applicants. Shares, whether physical or through the Central Depository Company (CDC), will be dispatched to the successful applicants by March 12, 2004.