|
|
|
|
|
The Privatisation Commission (PC) has received seven Expressions of
Interest (EOIs) from its panel of Lead Managers for the IPO of Kot Addu Power
Company Limited ('KAPCO').
In view of the response received for the share offerings of OGDCL and SSGC,
the government has decided to list the shares of ('KAPCO') at the Karachi,
Lahore and Islamabad Stock Exchanges and offer 10% shares to the general
public with additional 10% shares green shoe option in case of over
subscription.
KAPCO is a large IPP with a power generation capacity of 1600 MW. KAPCO was
privatized in 1996 and the government transferred management control to M/s.
International Power plc along with 26% shares. Subsequently, 10% additional
shares were also divested to the new owners. Total proceeds of Rs.9 billion
were realized by the government in this divestment and the government now
holds 64% of KAPCO's total 880 million issued shares.
KAPCO is a highly profitable company with a good operational record. If the
market response to the recent share offerings of OGDCL, SSGC and Bank Alfalah
gives any indication, an offer of shares of a company like KAPCO would most
likely receive a heavy response from the general investors. The listing of
KAPCO would increase market capitalization significantly and would bring a
worthwhile addition, rather a leader, to the power sector companies listed on
the stock exchanges. The large quantity of shares offered would also add to
the liquid share float in the market.
EOIs have been received from Arif Habib Securities Limited, BMA Capital
Management Limited, Elixir Securities Pakistan (Pvt.) Limited, First Capital
Equities Limited, Global Securities Pakistan Limited, KASB Securities (Pvt)
Limited and Orix Investment Bank Pakistan Limited.
The Lead Manager for the transaction would be selected out of the seven
interested parties through a competitive and transparent process consisting of
technical and financial pre-qualification. The Lead Manager would be
responsible for bringing the transaction to a successful conclusion within the
specified timeframe. PC is also in the process of secondary Public Offering of
PIA and Initial Public Offering of PPL shares.