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The Federal Minister for Privatisation & Investment Dr. Abdul Hafeez Shaikh
will inaugurate the formal trading of OGDCL shares after formal listing at
Islamabad Stock Exchange, Fazal-e-Haq Road Islamabad on January 19, 2004
(Monday) at 0915 hrs.
The historic success of the Initial Public Offer (IPO) of 2. 5 % shares of
OGDCL (107.5 million shares) received overwhelming response from the general
public and institutional investors heavily over subscribed. The Government
exercised the green shoe option for additional offer of 2.5 % shares in OGDCL.
The Offer for Sale of 2.5% shares of OGDCL by the government has been a
tremendous success. Due to heavy support from both, individual as well as
institutional investors, the offer has been oversubscribed by more than seven
times attracting an amount of more than Rs. 28.12 billion. 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 has made the
transaction the largest and most successful pubic offering to date.
The listing of OGDCL shares has increased market capitalization by more than
Rs. 170 billion, which translates to about US$ 3 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.
OGDCL is a big step towards the deepening and roadening 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.
The listing and offer for sale of OGDCL has been a landmark transaction for
the capital markets, the government, the Privatisation Commission, the
Ministry of Petroleum and Natural Resources as well as the Company OGDCL,
itself. 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.