KARACHI, June 11: The government intends to offer 10 per cent shares in Pakistan Petroleum Limited (PPL) out of its paid-up capital of Rs6.850 billion. Moin M. Fudda, Managing Director Karachi Stock Exchange, confirmed on Friday.

He said that in case of over subscription, the government could exercise green-shoe option of offering additional 5 per cent stock. The 15 per cent divestment of government's fully-owned equity in POL would amount to Rs1.028 billion.

Since the government has already announced priority to investors in the minimum lot of 500 shares, as many as 205,751 small applicants would be able to benefit and mobilize their savings, said Mr Fudda.

He stated that the KSE had received application for listing of Pakistan Petroleum Limited on Friday. He observed that the shares in PPL were being offered to the general public through stock exchanges as part of government's Privatization Policy.

The listing of PPL on the stock exchanges would make substantial contribution to the existing market capitalization of the exchange and would add new dimension to the market diversity.

Keeping in view the hardship faced by the applicants in the recent public offerings, in the matter of credit of shares through book entry, Mr Fudda advised the applicants to open their own investor's account under Investors Account Services (IAS) of CDC.

"The exchange highly appreciates the government's decision to use the capital market platform in pursuance of its privatization policy, which is significantly contributing towards improving the depth of the capital market", he said.