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Continuing on the "Privatisation for the People" program of divestments
through the stock market, the government has decided to list the shares of
United Bank Limited ('UBL') at the Karachi, Lahore and Islamabad Stock
Exchanges and offer 10% shares to the general public with a green shoe option
of additional 5% shares. The transaction is envisaged to be taken to the
market in June 2005.
Privatisation Commission has appointed AKD Securities (Pvt.) Limited as the
Lead Manager for the IPO of ('UBL') after a thorough and comprehensive
pre-qualification process. UBL, the third largest banks in Pakistan, was
privatized in October 2002 through a strategic sale in which 51% (264.18
million) shares were transferred along with management control. 25.5% (132.09
million) shares each were acquired by the Abu Dhabi Group and the Bestway
Group for a total price of Rs.12.3 billion. The Government currently holds 49%
of UBL's total
518 million issued shares.
UBL is a highly profitable bank with a good operational record. If the market
response to the recent share offerings of OGDCL, SSGC, PPL and KAPCO gives any
indication, an offer of shares of a bank like UBL would most likely receive a
heavy response from the general investors. The listing of UBL would increase
market capitalization significantly and would bring a worthwhile addition,
rather a leader, to the banking sector companies listed on the stock
exchanges.
Shares will be offered in lots of two hundred (200) per applicant to pass on
the benefit to a large section of the general public. Road shows will be
conducted in a number of cities for informing the public and attracting
maximum participation. The large quantity of shares offered will also add to
the liquid share float in the market and add significantly to the investor
base.