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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.