The Director General, Ministry of Privatisation M. Mansoor Zubair on Wednesday said that the Initial Public Offering (IPO) of the Kapco (Kot Addu Power Company Limited) fetch Rs 5.28 billion for the country. Addressing a Road Show for Kapco IPO here he said that Kapco is a highly profitable company with a good operational record, which is also witnessed from the massive response of public to the offer. He said that more than 316,000 applicants are expected to benefit from balloting the Kapco shares.
He informed the participants of the road show that the process of privatisation was started in 1991 with adopting a principle stand that government has nothing to do the business institutions. The purpose of the process was to let the private sector run the business entrepreneurs creating a healthy competition and improvement in the services.
The Director General in Privatisation Commission of Pakistan is that government has left himself with the responsibilities of only framing policies leaving it to the general public and private sector to take shares in the national assets.
He said that the policies of the government had also helped quelled the impression that the privatisation process or running of the big business concerns are the work of the rich and wealthy people. He further said that the present government through giving a new slogan, "Privatisation for the People" floated the shares of various banking institutions through IPO in the capital market.
Mansoor Zubair said that now the people are fully participating in the privatisation process enabling the common man and middle class to come forward in this sector. He said that people are earning a handsome profit from the business. He said that earlier people have given good response to the IPOs of NBP, OGDC and PPL.
Talking about the benefit of the general public from the process, he said that the shares of NBP, OGDC and PPL companies were offered at Rs 17.37 billion and now after the passage of few months the shareholders have earned Rs 30 billion. He said that the process is benefiting the general public adding that the dividend and prices of the shares would be further increased.
Earlier, officials of the Privatisation Commission while briefing the participants of the show said that the offer price per share has been fixed at Rs 30/- per share and applications can be submitted for 500 shares only, requiring an investment of Rs 15, 000 per application.
Up to 176,050,000 (20 percent) shares of Kapco (including green shoe option) will be offered to the general public resulting in potential proceeds of up to Rs 5.28 billion.
The subscription would remain open for four consecutive days ie from Monday, February 21, 2005 to Thursday 24, 2005 during the banking hours.
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