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The Initial Public Offering (IPO) of 10 % shares of Pakistan Petroleum
Limited, which has set a first ever and a new tremendous record of general
public response touched the number of applications to 755,000 worth Rs.21
billion reflecting confidence of the people in the privatisation program of
the government and the acceptance of new trends in the privatisation. Dr.
Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment stated
while addressing the Board of Privatisation Commission meeting held here
today.
The Minister said that among these applications 752,000 were submitted by
individuals for 500 shares, which were being given preference for open
balloting being scheduled in the first week of August 2004 at Karachi to
decide 205,700 successful applications in a most transparent manner, which
would generate Rs.5.65 billion proceeds. We would continue to transfer the
benefits of privatisation to the general public under the slogan of
'Privatisation for the People' through well sequenced with proper spacing of
the Public Offerings of other Public Sector entities. These included Kot Adu
Power Company, United Bank Limited, State Life Insurance Company and Pakistan
Steel, while PC Board divestment committee would continue to identify more
entities for Public Offerings, he said.
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. The
government would exercise the green shoe option of additional 5 % shares of
PPL already approved by CCOP, he said.
Dr. Hafeez Shaikh further said that additional eight EOIs received 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 confirmed that the transaction has great interest for the investors.
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 directed the Privatisation Commission to put in place safe guards for the
entities being privatised till the completion of their privatisation process
and to make efforts for reviving the dead assets through privatisation
process.
PC Board approved the transaction structure for Karachi Electric Supply
Corporation and also recommended the inclusion of 10 projects of PMDC and
Tomato Past Plant in the Privatisation Program. The sale of IAL, NITL, PECO,
Lasbella Textile Mills and 10 % shares of Nowshera PVC were also approved.
Earlier, the Secretary PC Mr. Salim Gul informed that PIAC shares have been
uploaded in the CDC accounts, while physical dispatch of shares have also
started from July 30, 2004. The PC Board members and the senior officials of
the respective ministries and PC Consultants attended the meeting.