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The subscription for the first secondary Public Offering of 5 % SSGC shares
(33.55 million) will commence from February 9, 2004 and will close on February
11, 2004. Mr. Ahmad Waqar Secretary Privatisation Commission announced this
during a presentation to the investors regarding the SSGC shares Road Show
held jointly under the auspices of
Privatisation Commission and Lead Manager Consortium members AMZ Securities (Pvt)
Ltd, Meezan Bank Limited and Yousaf Adil Saleem & Company here today.
Mr. Ahmad Waqar while addressing the presentation said that after NBP and
OGDCL, SSGC was another opportunity for the general public to reap the
benefits of privatization from this investment instrument. This offer would
significantly increase the float of SSGC shares in the Stock Market and bring
the stock among the highly traded ones, he hoped.
He said that the privatisation was one of the key elements of the economic
reform agenda of the government being implemented through two pronged strategy
i.e. through strategic sale and the divestment of Government shares in the
public sector entities through the Stock Market. The objective of divestment
through capital market was to widen, deepen and broaden the smaller share
holders and to strengthen the Stock Market, he added. The Government of
Pakistan had held 70.43 % shares of SSGCL while 29.57 % shares are with the
general public and institutions, he said.
He further stated that preference would be given to the smaller applicants for
the minimum lot of 1000 shares for the Public Offering (PO) of 5 % shares
(33.56 million shares) of Sui Southern Gas Company Limited (SSGCL) in order to
increase the investor base and by exercising a green shoe option of additional
5 % shares in case of over subscription, all being offered at a price of Rs.
26/ = per share including a premium of Rs. 16/= would generate the expected
total proceeds for 10 % shares to the tune of Rs. 1.74 billion. Sui Southern
Gas Company (SSGC) a company is listed on the Stock Market since 1956.
He informed that the three Stock Exchanges of the country would process this
secondary offering and there would be 14 banks to this offer while the
subscription forms to this offer could be obtained from the branches of the
respective banks, stock exchanges or they could be down load from the PC and
Lead Manager Web sites: www.privatisation.gov.pk and www.amzsec.com
Total proceeds during the past one year through offering of GoP shares in POL,
ARL, DG Khan Cement, NBP, OGDCL and the Strategic sale of Habib Bank Limited
had touched the figure of about Rs. 40 billion, he said and added that in the
coming months public offering of PIA shares and Initial Public Offering of Kot
Adu Power Company (KAPCO) and Pakistan Petroleum Limited.
Replying to a question regarding the unbundling of SSGC, he said that the
studies were underway ever 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 MD SSGC Munawar Baseer and the Lead Managers to the transaction
gave an over view of the company's resources, financial performance, and its
future 5 year development & expansion plans estimated at Rs. 34.5 billion.
It was the second Road Show after Karachi, which was largely participated. The
general public and the investors were invited to participate in this Show to
obtain necessary information regarding the Public Offering of SSGC.