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The Initial Public Offering (IPO) of 10 % shares of Pakistan Petroleum
Limited, which is highly oversubscribed has set a first ever and a new
historic record by crossing the number of applications to half a million from
the general public according to the reports received so far, which was never
witnessed earlier in any of the Public Offerings in Pakistan. Dr. Abdul Hafeez
Shaikh Federal Minister for Privatisation & Investment announced it in a
statement issued here today.
Dr. Hafeez Shaikh said that the overwhelming and enthusiastic response at such
a large scale from the general public has made our dream of 'Privatisation for
the People' come true. The benefits gained by the common man through the
Public Offerings of NBP, OGDCL
and SSGC has proved our stance that Privatisation was a pro-poor process and
it has also broadened, strengthened and deepened the Capital Market, which
would increase the market capitalization from US $ 26 billion to US $ 27.25
billion with the subscription of PPL shares, which would benefit about 200,500
individuals while the government would receive proceeds worth Rs.5.65 billion
through this offer. The government would exercise the green shoe option of
additional 5 % shares of PPL already approved by CCOP, he said.
The Minister termed the response of the people a reaffirmation of the
confidence by the general public in the economic and privatisation policies of
the government being followed consistently for the last five years. Due to the
remarkable over subscription balloting would be held at Karachi in the coming
week, which would be open for the general public, he said.
Dr. Hafeez Shaikh further said that Privatisation Commission has received
eight more EOIs in response to its recent invitation for fresh 'Expression of
Interest' for the sale of 94.8 % shares of Pak Arab Fertilizers (Pvt) Limited
(PAFL) from the prospective investors including fertilizer companies,
industrial companies and groups. There were four prospective bidders who had
already submitted their EOIs in response to earlier invitation in May 2002 and
were pre-qualified. The total number of EOIs is now raised to twelve.
He said that we were providing a level playing field to the investors while
ensuring maximum competition for maximizing the sale proceeds and to have
quality players for our national assets for improving their performance and
production. We were not ready to sell our national assets at a throwaway price
or in haste, which was proven from the fact that we received highest offers
above our reference prices for Faletti's Hotel, AC Rohri, Thatta Cement, Hyatt
Regency, HBL and other entities, the Minister added.
The new parties, which have submitted EOIs along with Statement of
Qualification (SOQ) for Pakarab Fertilizers include: 1. Al-Ghurair Group of
UAE, 2.Husnain Cotex Limited, 3. Jahangir Siddiqui Group, 4. Sapphire Group,
5. Siddiqsons Group, 6. SAIF Group of Companies/ Haji Saifullah Group, 7.
Fauji Fertilizers Company Limited and 8. Haji Ghani Usman Group while the
parties already pre-qualified include 9. Consortium of Fatima Group/Reliance
Exports and Nicheman Corporation (Japan), 10. Consortium of Nishat Chunian and
Umer Fabrics, 11. Dawood Hercules Chemicals Ltd and 12. Employees Management
Group of Pakarab Fertilizers Company Limited (Conditionally Pre-qualified).
PAFL is 52 % GoP owned private limited company (through National Fertilizers
Corporation) located at Khenawal Road, Multan in the province of Punjab.
International Petroleum Investment Company of UAE (IPIC) owns the balance 48 %
shares. PAFL is a large fertilizer complex in Pakistan engaged in the
manufacture of Calcium Ammonium Nitrate (CAN), Nitro Phosphate (NP) commonly
known as compound fertilizer, besides Ammonia, Nitric Acid and Urea. The
company earned a pre-tax profit of Rs. 1,116 million in 2003.