KARACHI, June 17: Sui Southern Gas Company Limited (SSGC) and Saudi Pak Leasing Company Limited announced on Monday that their respective Term Finance Certificates (TFCs) had stood oversubscribed.

SSGC said it had received subscription in the sum of Rs350.54 million against the offer of Rs200 million to the general public.

The SSGC’s 2nd tranche of the second TFC issue of the aggregate amount of Rs1.05 billion offered to Institutional investors, had earlier been fully subscribed.

Saudi Pak Leasing Company Limited stated that as per the final figures received from the bankers on the issue, Rs262.78 million had been received against the public offer of Rs80 million. “SPLC has decided to exercise its green shoe option and retain only Rs30 million, making the total public offer of Rs110 million”, Saudi Pak stated in a newspaper announcement. The company noted that the first tranche issue size, therefore, would amount to Rs430 million.

Both companies announced that the TFCs had been allotted to the public according to their reserve allocation for each ‘category of application’ and remaining TFCs were allotted on a pro rata basis, as published in the Prospectus.

Analysts observed that the subscription figures to the two latest TFC offers could indicate investors’ appetite for the private corporate debt instruments. The State Bank of Pakistan Q3 report released last week had noted that the corporate debt market had seen brisk activity since the beginning of fiscal year with 13 issues (TFCs) floated in the market during the financial year 2002. But only one TFC was launched during the third quarter of the year: that of Reliance Weaving Mills Limited. The size of that TFC was Rs150 million, issued on February 6. But the SBP concluded: “The future outlook (for TFCs) is positive as a number of large issues are in the pipeline”.

According to the KSE quotation list, the 2nd TFC public issue of NDLC and the 2nd issue of Engro Chemical have been approved by the Exchange while MCB has applied for listing of its TFC. The Rs105.0 million public issue of TFC by Sitara Chemical Industries — which is to be the first on profit and loss sharing basis — would open for public subscription on June 19 and 20.