The Water and Power Development Authority (Wadpa) and UK-based International Power Plc have allowed sale of shares in Kot Adu Power Co through stock market. "Kot Adu Power Co, of which we own 36 percent, our partner Water and Power Development Authority intends to sell down a 20 percent block of its 64 percent shareholding via an 'Initial Public Offering," said a statement posted on the website of International Power Plc. This IPO of 20 percent of the plant's total equity has been approved by all shareholders, the statement added.
Pakistan plans to sell 10 percent, or 88 million, shares in a public offering through Karachi Stock Exchange. It may sell another 10 percent in the event of surplus demand.
Kot Adu's is a 1600 megawatt power generation plant. In June, Pakistan hired Global Securities Ltd, a Karachi-based brokerage company, as adviser to help sell the shares of Kot Adu Co.
The Privatisation Commission is selling shares through stock market taking advantage of a rally at the Karachi Stock Exchange and to deepen capital market base, which has gained 19 percent since January.
The government is expected to raise more than 5 billion rupees by selling a stake of as much 20 percent, or 176 million shares, in Kot Adu, analysts said.
The government also intends to raise $200 million through sale of global depository receipts in Oil & Gas Development Co. Global depository receipts are certificates held outside of Pakistan representing shares of local companies.
In November 2003, Pakistan raised 6.8 billion rupees by selling 5 percent of Oil & Gas Development Co, the biggest explorer.