Privatisation and Investment Minister Dr Abdul Hafeez Shaikh will open the first roadshow for the Initial Public Offering (IPO) of Kot Addu Power Company (Kapco) shares on Tuesday at Avari Hotel in Karachi. The Privatisation Commission is holding roadshows and marketing presentations in a number of cities for the information and benefit of the general public.
The public would also be informed of the investment opportunities through the press and electronic media campaigns.
The offer price per share has been fixed at Rs 30 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. Subscription will remain open for four consecutive days i.e. from February 21 to 24, during banking hours.
Total of 25 banks, namely, ABN-AMRO Bank, Allied Bank of Pakistan, Askari Commercial Bank, Bank Alfalah, Bank Al Habib, Bolan Bank, Faysal Bank, First Dawood Investment Bank, First Women Bank, Habib Bank A.G. Zurich, Habib Bank, Jahangir Siddiqui Investment Bank, KASB Bank, Meezan Bank Limited, Metropolitan Bank, Muslim Commercial Bank, National Bank of Pakistan, NDLC-IFIC Bank, Picic Commercial Bank, Prime Commercial Bank, Saudi Pak Commercial Bank, Soneri Bank, Standard Chartered Bank, The Bank of Punjab, and United Bank Limited have been appointed as domestic bankers to the offer in order to facilitate the general public.
Six banks in the Middle East have been appointed as Overseas Bankers to the Offer including Habib Bank Limited, Bahrain; Habib Bank Limited, Oman; Habib Bank Limited, UAE; United Bank Limited, Bahrain; United Bank Limited, Qatar; and United Bank Limited, UAE. This is in line with the government policy of transferring the benefits of privatisation to common man under the slogan, 'Privatisation for the People'.
Kapco is a highly profitable company with a good operational record. If the ever-increasing response to the recent IPOs by the Privatisation Commission is any indication, then a massive record-breaking response to the Kapco IPO may be expected.
More than 316,000 applicants are expected to benefit from balloting for Kapco shares.
The listing of Kapco would increase market capitalisation significantly and would bring a worthwhile addition, rather a leader, to the power sector companies listed on the stock exchanges.
The large quantity of shares offered would also add to the liquid share float in the market. Global Securities Pakistan Limited is the Lead Manager for the transaction.