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The Privatisation Commission of the Islamic Republic of Pakistan today
announced the successful completion of the management roadshow and
bookbuilding process for the domestic and international institutional offering
of ordinary shares (“Shares”) and Global Depositary Shares (“GDSs”) (the
“Offer”) of Oil and Gas Development Company Limited (“OGDCL”). The final
institutional offer details are as follows:
1 The Offer was priced at PKR 115 per Share and US$18.90 per GDS, with each
GDS representing 10 shares
2 The offering price represents an approximately 9.5% discount to today’s
closing price, which compares favourably with debut GDR offerings for other
Asian companies
3 The total number of OGDCL Shares sold by the Privatisation Commission is
376,799,000, excluding the over-allotment option
4 The underwriters have been granted an over-allotment option for up
53,294,000 additional Shares, in the form of Shares and GDSs, exercisable for
a period of 30 days from the announcement of the offer price
5 The gross proceeds of the institutional Offer are expected to amount to PKR
43,332 million (US$ 712 million), excluding the over-allotment option.
Including the over-allotment option and the retail offering, gross proceeds of
the Offer are expected to amount to PKR 49,461 million (US$813mn)
6 The Offer represents 10% of OGDCL’s outstanding share capital and as a
result of the offering the free float of OGDCL will triple to approximately
15%
7 At the offering size, the transaction was approximately two-times
oversubscribed
8 Demand was generated from a broad range of institutional investors from the
United States, the United Kingdom, Asia and the Middle East, as well as the
domestic Pakistan institutional market
9 During the course of a two week international roadshow, OGDCL’s management
met with over 80 of the world’s leading institutions, many of whom
participated in the transaction
10 Approximately 95% of the Institutional Offer was allocated to international
institutional investors and 5% to institutional investors based in Pakistan
11 This Offer is the first time that institutional investors in Pakistan have
participated in an international bookbuilding for a publicly-traded,
Pakistan-listed company
12 Conditional trading of the GDSs on the London Stock Exchange will also
commence on 1 December 2006; unconditional trading will commence on 6 December
2006
13 A retail offer of 21,505,000 Shares to investors in Pakistan at a
price of PKR 110 per Share will commence in mid-December and is expected to be
completed within a few weeks thereafter; the retail offer price represents an
effective discount of almost 3% to the Institutional Offer price after
adjusting for the Company’s announced first quarter dividend payment of PKR
1.75 per Share that is not available to participants in the retail offering
14 BMA Capital, Citigroup and Goldman Sachs International are Joint Lead
Managers with Citigroup and Goldman Sachs International acting as Joint Global
Co-ordinators and Bookrunners for the international offering and BMA Capital
as Lead Manager and Bookrunner for the domestic offering and joint lead
manager of the international offering
Commenting on the success of the Secondary Offering, Zahid Hamid, Minister
for Privatisation and Investment, said:
“The success of this offering sends a strong signal of global institutional
investor confidence in Pakistan and bodes well for Pakistan’s growing
participation in the international capital markets. The Government is
committed to maintaining the pace of its privatisation programme.”
“We are very pleased that the international market has shown its support for
OGDCL at a price and a valuation that compares favourably with its
international peers.”
Mr Arshad Nasar, Chairman and Chief Executive Officer of OGDCL, said:
“The level of demand from investors for OGDCL shares shows a strong
appreciation of our business and prospects. This is a great endorsement of the
work of our employees, who continue to work tirelessly to sustain OGDCL’s
position as Pakistan’s leading E&P company to benefit all our shareholders.”
“We are delighted to welcome a broad range of the world’s leading institutions
as shareholders in our company and are pleased that the offering has enhanced
our profile in the international markets.”