Federal Minister for Privatisation and Investment, Zahid Hamid has said that the government is keen to maintain the momentum to strengthen, deepen and broaden the base of capital markets through the public offerings of public sector entities shares.
The minister stated this while chairing a meeting of the Privatisation Commission (PC) Board here on Thursday. This is being done after remarkably successful Global Depository Receipts (GDRs) of Oil and Gas Development Company Limited (OGDCL), United Bank Limited (UBL) and the largest ever Initial Public Offering of Habib Bank Limited (HBL) which was oversubscribed by 2.33 times.
The PC Board was informed that 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.
Total subscription of Rs 18.94 billion has been received against a base offer of Rs 8.11 billion (excluding Greenshoe Option). 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).
Keeping the objectives of the Government's "Privatisation for the People" programme, 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 PC Board constituted a pre-qualification committee for the privatisation of 26 PTDC's motels and restaurants, which received encouraging response from 37 parties. The meeting also reviewed the progress and status of various ongoing and upcoming transactions including Initial Public Offering (IPO) of Pakistan Steel Mills Corporation (PSMC), Services International Hotel, Republic Motors and Hazara Phosphate and Fertilisers Limited.
Earlier, the PC Board condoled the tragic death of its Secretary Arif Mansur and his wife. The participants offered `fateha' for the departed souls and lauded the services rendered by late Arif Mansur stating him as a hardworking, intelligent, devoted, honest and outstanding civil servant. Members of the Privatisation Commission Board, senior officials of the respective Ministries and departments attended the meeting.