ISLAMABAD: Minister of State for Privatization Commission (PC) Muhammad Zubair said that on recommendation of PC Board, the Cabinet Committee on Privatization (CCoP) has approved the strike price of Rs 219 per share for Pakistan Petroleum Limited (PPL) to the successful bidders which would yield Rs 15.9 billion to the government.
Addressing a news conference here on Saturday, Muhammad Zubair said that the transaction structure of Pakistan Petroleum Limited (PPL) offered 70 million shares to international and domestic institutional investors and High Net Worth individuals (HNWI).
He said at the floor price of Rs. 205 per share total orders of Rs. 29.33 billion (143 million) have been received which is almost 100 percent more than the offer size at the `floor price’.
“At the strike price of Rs. 219 per share, total orders of Rs. 15.98 billion (73 million) shares have been received as against the expected revenue of Rs 14.3 billion”, he added.
The Minister of State for Privatization further informed that this was the largest ever book building in the Capital Market which Pakistan has undertaken and it has been completed in a successful manner.
The individuals have took keen interest in the transaction as 24 percent shares were bought by them while foreign investors bought 9 percent shares, the state minister remarked.
Within a short period of two weeks, the government managed to finalize two major transactions which shows the commitment of the government, Mr. Zubair said adding “we conducted road shows not only in big cities but also in small cities like Sialkot and Faisalabad”.
He said that whole process of transaction was put on live through a software and everybody had access to see each and every thing during the process which shows that the process was 100 percent transparent.
To a question, Muhammad Zubair said that the PPL’s transaction was done in a very difficult situation as the country witnessed some serious issues during last two weeks but “if we postponed this transaction, a negative message would passed on to the global investors”.
The privatization process would continue for next few years and the government would keep energy sector on priority, he said pointing out that transaction of these sectors would be finalized within a year.
To another question, the State Minister said that the government plans to float shares of Oil and Gas Development Authority (OGDCL) in September this year.
He urged the country’s media to highlight the government’s positive achievements so that a good message should be conveyed internationally.