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Roadshow Presentations for the Offer for the Sale of Shares of Habib Bank
Limited (“HBL”) were held in Karachi on July 23, 2007 and in Lahore on July
24, 2007. The Offer for Sale is being conducted by the Privatisation
Commission, Government of Pakistan out of State Bank of Pakistan’s
shareholding in HBL.
Global Securities Pakistan Limited has been appointed as the Lead Manager for
the Transaction. 34,500,000 shares (5% of the Paid-up Capital) of HBL are
being offered at a price of Rs.235/- (inclusive of a premium of Rs. 225/- per
share) and in case of oversubscription the Privatisation Commission may
exercise the Greenshoe option and offer an additional 17,250,000 shares (2.5%
of Paid-up Capital).
Mr. Zahid Hamid, the Minister for Privatisation & Investment presided over the
inaugural Roadshow in Karachi. Mr. Hamid stated that the HBL IPO will be the
largest-ever IPO in the history of Pakistan’s capital markets with a
transaction value is Rs.12.16 billion which is nearly twice the size of the
second largest IPO - that of OGDCL, which was Rs.6.88 billion in November
2003. This transaction would also potentially benefit 517,500 investors, the
largest number ever in such offerings! The offer is being made in minimum lots
of 100 shares to allow participation by small investors resulting in broad
based shareholding of HBL. It is for the first time that the trading lots in
the stock exchanges for any offering by the Privatisation Commission will be
100 shares.
The Minister stated that HBL was an outstanding example of successful
privatisation. The Aga Khan Fund for Economic Development purchased a 51%
stake in HBL in December 2003. The Bank’s profitability since privatisation
has improved at a Compound Annual Growth Rate of 53% and Advances have grown
at 24% per annum. HBL has the largest network of all banks in Pakistan with
1,437 branches. It ranks first in terms of Advances and second only to NBP in
terms of deposits and total assets.
Subscription for the IPO will take place from July 26, 2007 to July 31, 2007.