ALL STOCK EXCHANGES CLEAR KAPCO FOR IPO

Islamabad, January 3, 2005

The Karachi, Lahore and Islamabad Stock Exchanges have granted clearance to the Offer for Sale of shares of KAPCO. Subsequent to completion of some additional formalities, clearance from the Securities & Commission is also being sought. Subscription for the KAPCO shares is expected to take place in January 2005.

The Privatisation Commission is holding road shows and marketing presentations in a number of cities for the information and benefit of the general public. The public would also be informed of the investment opportunity through the press and electronic media campaigns. 

The offer price per share has been fixed at Rs.30/- per share and applications can be submitted for minimum 500 shares only, requiring an investment of Rs.15,000/- per application. Upto 20% shares of KAPCO will be offered to the general public resulting in potential proceeds of up to Rs.5.28 billion.  A large number of banks have been appointed as bankers to the offer in order to facilitate the citizens of Pakistan/ general public and subscription is expected to remain open for 4 to 5 days in line with the government's policy to transfer the benefits of privatisation to the common man under the slogan, 'Privatisation for the People'.  KAPCO is a highly profitable company with a good operational record. If the market response to the recent PPL share offering gives any indication, an offer of shares of a company like KAPCO would most likely receive a heavy response from the general public. 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. Global Securities Pakistan Limited are the Lead Managers for the transaction.