BoK IPO likely by month-end

The Bank of Khyber (BoK) is going to float 41.1 million shares through Karachi Stock Exchange (KSE) by the end of the current month, Managing Director, Munir-ul-Haq said at a press briefing on Saturday.
He said that the bank had already submitted an application to KSE and its approval is expected in the second week of this month. After getting green signal from the bourse the bank would move the Securities and Exchange Commission of Pakistan (SECP) for giving date to the float the shares through stock exchange. "We are sure to float the shares in the third or last week of the current month," Munir said.
NWFP Minister for Information Asif Iqbal Daudzai and officials of the bank were also present at the press briefing.
The Bank of Khyber is offering 34.25 percent additional capital of the existing capital of Rs 1.2 billion through Initial Public Offering (IPO) to raise the capital to Rs 1.642 billion.
He said that the book value of one share is Rs 17 and it would be offered at Rs 15 per share in the open market. The value of the shares is Rs 411 million and are being offered for Rs 615 million.
Abdul Majid Alvi of Finance Division of the Bank of Khyber gave detailed financial highlights, its recovery status, achievements and future outlook of the bank.
He said that till October 2005, the bank had earned a net profit of Rs 269 million and is expected to cross Rs 300 million by the end of the year. He said that during last financial year the advances of the bank had registered a growth by 35.91 percent, investment by 6.75 percent, total assets by 15.39 percent, equity by 18.61 percent, deposits by 1.51 percent, and profit after tax by 49.07 percent and EPS by 48.86 percent.
About the achievements of the bank during last two years, he said that Islamic banking was introduced on November 27, 2003. He said that four branches have been converted into Islamic banking system.
"Although Islamic banking system had been introduced in only four branches but the response of the people is very encouraging," he said.
He said that the bank was going to open three more branches in Batkhela (Malakand Agency), Swabi and Rawalpindi (Punjab).
He said that the bank has a target of installing ATMs in 12 branches.
Mohammad Asad, head of the Islamic banking division briefed on Islamic banking modes of Ijara, Murabaha, Diminishing Musharika, Mursharka, Islamic Investment Bonds and Riba-Free Certificates.
He said that the bank during current year had promoted 110 officers on merit basis and has also announced special incentives like increments to the employees of the bank.