KARACHI, Sept 2: The Privatization Commission told the Karachi Stock Exchange on Monday that perception that additional offering of shares in National Bank of Pakistan (NBP) might be at par was “incorrect”.

A letter signed by Muhammed Farhan Malik, Privatization Commission, Ministry of Privatization, Government of Pakistan, received and announced at the KSE at 3:15 pm, stated that the offering price mechanism for the additional 5 per cent shares (with green shoe option to offer an extra 5 per cent in case of oversubscription) in NBP to the general public would form part of the offer for sale document and was expected to provide an “attractive investment opportunity for investors keeping in view the strong fundamentals of the bank and the prevailing market multiples.”

The PC Communique stated that the additional offer of sale of NBP shares was expected to be taken to the market and completed within September 2002.

PC recalled that the Cabinet Committee on Privatization had recently approved the additional offering of 5 per cent GOP holding with green shoe option, “on best efforts basis”. PC stated that the Lead Managers to the GOP for the Initial Public Offering of NBP completed in November 2001, Elixir Securities and Taseer Hadi Khalid & Co had been retained for the said additional offering of shares.

“The transaction is inter-alia being undertaken with the objectives of broadening the base of ownership, passing the benefits of privatization to the general public and further strengthening the domestic capital markets,” PC said.