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Privatisation Commission has clarified that the applications can be made
through either scrip less (CDC Account) as well as physical form for the
subscription for Initial Public Offering (IPO) of Pakistan Petroleum Limited (PPL)
shares, which commenced today. In case of applying through CDC account, the
applicants will have three options: a) the applicant can apply through his/her
own CDC Investor Account b) through his/ her broker either in the sub account
maintained with the broker or Member's Group Account. The Commission dispelled
the impression created through a news report published by a Karachi based Urdu
national daily that the subscription for PPL shares could be made through CDC
account only. PC termed the news item as totally incorrect, misleading and
contrary to the facts.
The first day of PPL shares subscription received enthusiastic response from
the general public and long queues were witnessed out side the branches of the
bankers to the offer in all the major cities and the rural areas of the
country, which is expected to increase in the coming days.
The IPO of PPL shares shall remain open till Monday to July 22, 2004
(Thursday) for four days during banking hours at the Government's offer price
of Rs.55/= per share. The price for PPL IPO will be inclusive of the transfer
fee and thus no additional transfer fee would be charged to the subscribers.
PC held road shows in all the major cities of the country including Islamabad,
Karachi, Lahore, Quetta and Peshawar to inform the general public and the
investors regarding the procedure to apply, the worth of PPL and the risks
involved. Lead Manger to the transaction is Elixir Securities Pakistan (Pvt)
Ltd.
PPL is the fifth company after NBP, OGDCL, SSGC and PIAC whose shares are
being offered to the general public through the Capital Market. It is one of
the large companies in the oil & gas exploration and production sector and is
the owner of the Sui Gas fields.
The government has approved the divestment of PPL shares through an Offer for
Sale of 10% (68.58 million) of the company's issued shares to the general
public with a green shoe option of additional 5% shares in case of over
subscription. Applications are being invited in multiples of 500 shares. In
line with the government's objective of 'Privatisation for the People',
preference in allocation will be given to the smallest applicants for 500
shares for a total investment of Rs.27, 500/=. Whereas this will directly
benefit the small investors it will also help in broadening the shareholder
base and lend additional strength to the market. The listing of PPL will also
add significantly to market capitalization. It is expected that PPL would
become one of the highly traded stocks in the stock markets.
Prior to the subscription period, investors are advised to open their
individual accounts at the Central Depository Company ('CDC') for receiving
the shares early. People opting for physical shares would need at least one
extra month to be able to sell their shares.
It has been further advised that in case of joint CDC accounts, the applicants
can apply upto a minimum of four applications. Such applicants will be
required to submit separate application for each or joint account holder along
with attested copy of NIC of the applicant. The applicants are required to
attach attested copy of new NIC along with application form. In case the
applicant has applied for the new NIC, the attested copy of old NIC with
acknowledgment receipt of the application of new NIC must be attached.