In balloting for the offer for sale of shares for Habib Bank Limited took place on Saturday. A total subscription of Rs 18.94 billion has been received against a base offer of Rs 8.11 billion resulting in an over subscription of 2.33 times. The HBL IPO consisted of a 5 percent offer (34.5 million shares) with an additional Greenshoe Option of 2.5 percent (17.25 million shares).
The balloting took place in the presence of representatives of the Karachi, Lahore and Islamabad Stock Exchanges. The representatives of the Privatisation Commission, lead managers to the transaction, Habib Bank Limited and bankers were also present on the occasion of offer.
The successful completion of the HBL IPO represents yet another milestone achieved by the Privatisation Commission. The HBL IPO is the largest offering ever in Pakistan in terms of both value and number of successful applicants.
Keeping the objectives of the government's "Privatisation for the People" program, shares were offered for the first time in lots of 100 and multiples of 100 up to 500 shares and thereafter multiples of 500 shares. This made the subscription affordable for the common man.
The subscription of HBL shares commenced on July 26, 2007 and closed on July 31.
The Offer was allocated in the ratio of 80% for resident Pakistanis and 20% for non-resident Pakistanis. In the case of resident Pakistanis, the Offer was oversubscribed (excluding the Greenshoe Option) by 2.4 times.
A sum of Rs 15.58 billion was received against the offer of Rs 6.49 billion. Since the Offer was also oversubscribed in terms of number of applications, the Privatisation Commission decided to exercise the Greenshoe option of 2.5 percent of the paid-up capital, thereby allotting 100 shares each and benefiting 414,000 successful applicants, the largest number ever in the history of Pakistan.
All applicants under this category were considered for balloting irrespective of lot size applied for, as per terms set in the Offer for Sale Document.
In case of non-resident Pakistanis, the offer was oversubscribed by 2.08 times in terms of value only. Due to over subscription, the entire 20 percent allocation of shares offered, including Greenshoe option, has been allotted to non-resident Pakistanis. Applicants up to 500 shares will receive all shares applied for and the balance available shares will be allotted on a pro-rata basis to applicants who applied for more than 500 for shares.