ISLAMABAD, April 24: The Privatization Commission is considering the proposal to increase the percentage of shares for the upcoming Initial Public Offering (IPO) of Pakistan Petroleum Limited (PPL) and Kot Addu Power Company (Kapco) to accommodate maximum number of smaller applicants and to further broadening of the ownership base, deepening and strengthening the stock market.

It was discussed in a meeting under the chairmanship of Salim Gul, Federal Secretary Ministry of Privatization, says a handout issued here on Saturday.

The meeting was informed that the proposal was being reviewed in view of the recent secondary public offering of SSGC shares, which set historic record of participation of more than 250,000 smaller applicants and due to the size of the offer only 67,000 smaller applicants were accommodated through balloting even after exercising the green shoe option.

In order to implement the government's policy to pass on the benefits to general public the proposal will be considered in the next meeting of the Board of Privatization Commission.

The meeting was also informed that the privatization of United Bank Limited after the transfer of management control to the private sector have started yielding results for the national exchequer after announcement of dividend by the new management. For the first time since nationlization in 1974 and just over a year following privatization, UBL declared a dividend of Rs1,165,500,000 @ Rs2.25 per share. The government will receive Rs571,095,000 for its 49 per cent shareholding in the bank.

It was mentioned that prior to the privatization of UBL, the government injected Rs28.9 billion in the bank between 1997 and 2002 against which it received shares for the said amount in order to make UBL compliant with the capital adequacy requirements as prescribed by the State Bank of Pakistan and applicable to all commercial banking institutions operating in Pakistan.

The meeting also reviewed the progress and the present status of Faisalabad Electric Supply Company (FESCO), Jamshore Power Company (JPC), Pak-Arab Fertilizers Limited and other upcoming entities.