ISLAMABAD, May 7: The Cabinet Committee on Privatization (CCoP) on Wednesday decided to increase the size of initial public offering of Pakistan Petroleum Limited (PPL) and Kot Addu Power Company (Kapco).
The meeting, presided over by Finance Minister Shaukat Aziz, also brought forward the schedule for public offering of Pakistan International Airlines Company (PIAC) to May 31.
The three transactions (PIA, PPL and Kapco) are expected to fetch over Rs10 billion to the government, Dr Abdul Hafeez Sheikh told reporters after the CCoP meeting. Responding to a question, he said there was no controversy over the lease of Boeing-707 aircraft in the airline but the issue of non-payment of PIA to its shareholders was raised and the meeting was informed that the company would pay dividend in July this year.
The meeting also decided to offer the shares of PIA, PPL and Kapco in the lots of 500 share per application instead of earlier 1000 share per application to allow maximum public participation.
The meeting decided to first of all offer 10 (five plus five) per cent shares i.e. five per cent initial offer plus five per cent green shoe option in case of over subscription of PIA, followed by 15 (10 plus five) per cent shares of PPL in the vicinity of June 21 and then 20 (10 plus 10) per cent share of Kapco by July 12.
The CCoP also approved the highest offer of Rs255 per share i.e. Rs80.715 million bid received from Iqbal Khan for the sale of 60.41 per cent (3,16,530) shares of Kohinoor Oil Mills Limited (KOML). The bidding for the Mill was held on May 04, 2004.
The shares for PPL, KAPCO and PIA would be offered in the lot of 500 so that the benefit of the offering could reach the common man. The meeting decided to offer 10 per cent shares of PPL with five per cent green shoe option for over subscription, an official announcement said.
