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In the first year of the present government, the Privatisation Commission
has conducted the Privatisation of various Public sector entities to the tune
of Pak Rupees 40 billion through stock exchange and strategic sale. Dr. Abdul
Hafeez Shaikh stated this while opening the first Road Show for the secondary
public offering of 5 % GoP shares in Sui Southern Gas Company (SSGC) a company
listed on the Stock Market since 1956.
It would be the first secondary Public Offering of SSGC shares being made in
accordance with the government's policy to strengthen, broaden and deepen the
base of the Stock Market. The Government of Pakistan had held 70.43 % shares
of SSGCL while 29.57 % shares are with the general public and institutions, he
said.
While terming the Privatisation mode through Stock market as the most
transparent the Minster said that it also ensured that the benefits of
privatisation should be given to the common man as it broadened, deepened and
strengthened the base of the capital market.
He announced that preference would be given to the smaller applicants for the
minimum lot of 1000 shares for the Initial Public Offering (IPO) of 5 % shares
(33.56 million shares) of Sui Southern Gas Company Limited (SSGCL) with
exercising a green shoe option of additional 5 % shares in case of over
subscription, being offered at a price of Rs. 26/ = per share including a
premium of Rs. 16/= with an expectation of total proceeds from 10 % shares
offering to the tune of Rs. 1.74 billion.
He said that in the coming months public offering of PIA shares and Initial
Public Offering of Kot Adu Power Company (KAPCO), Pakistan Petroleum Limited (PPL)
and United Bank Limited (UBL) were under consideration with government. A
proper sequencing and spacing among these offerings would be maintained, he
added.
He said that the government was also progressing ahead with the strategic sale
of various mega entities and the double track strategy opted for the
privatisation of public sector entities would not only benefit the common man
of the country but it would also provide a level playing field to both the
domestic and the foreign quality players of world repute.
He informed the audience that no date had been fixed for SSGC share offering.
In view of Eid-Ul-Azha holidays and holding of peoples money by the banks, the
audience were unanimous to offer SSGC issue after Eid holidays, which was
agreed, however, the dates in regard would be announced later in consultation
with the SECP and all the three Stock Exchanges of the country. There would be
14 banks to this offer.
Replying to a question regarding the unbundling of SSGC, he said that the
studies were underway since 2000 and no actual unbundling was expected for the
next 2-3 years, however, any such decision, if taken, would aim to add value
to the company.
Earlier, the representatives of SSGC management and the Lead Managers to the
transaction AMZ securities, Mezan Bank and the Consortium gave an over view of
the company's performance and its future development plans.
The next Road Show at Lahore will be held at Pearl Continental Hotel, on
January 19, 2004 Monday at 4 p.m. The general public and the investors are
invited to participate in this Show to obtain necessary information regarding
the Public Offering of SSGC.