19 June 2004	Saturday	30 Rabi-us-Saani 1425

ISLAMABAD, June 18: The Privatization Commission has appointed M/s Global Securities Pakistan Limited as the Lead Manager for the initial public offering (IPO) of Kot Addu Power Company Limited (Kapco) shares.

They were selected from among seven Expressions of Interest (EoIs) from its panel of Lead Managers, according to a PC announcement. The government, it stated, had decided to offer 10 per cent of its stake in Kapco to the general public with a green shoe option of 10 per cent shares and listing the company at the Stock Exchanges of Karachi, Lahore and Islamabad.

It is envisaged to take the transaction of Kapco shares to the market after completion of the IPO of Pakistan Petroleum Limited (PPL) shares. A large power generation unit with the capacity of 1,600 megawatts, Kapco was privatized in 1996 and the government transferred management control to M/s International Power plc along with 26 per cent shares.

Subsequently, 10 per cent additional shares were also divested to the same firm and leaving government with 64 per cent shares of the total of 880 million shares of Kapco.

In view of the overwhelming response to the recent share offerings of OGDCL and SSGC, the Privatization Commission expects that Kapco too would evoke great interest among the general investors.

The listing of Kapco, moreover, would increase market capitalization significantly and mark a worthwhile addition to the power sector companies listed on the stock exchanges. The large quantity of shares offered would also add to the liquid share float in the market.

In line with the government's decision to pass on the benefits of privatization to the common man, it was further stated, the commission had so far benefited 197,887 small applicants through the public offering of government's shares in the National Bank of Pakistan, OGDCL and SSGC.