ISLAMABAD, July 27: The Initial Public Offering (IPO) of 10pc shares of Pakistan Petroleum Limited, which has been oversubscribed has set a new record by crossing the number of applications to half a million from the general public, according to the reports received so far.

Dr Abdul Hafeez Shaikh, Federal Minister for Privatization and Investment has said that the enthusiastic response on such a large scale from the general public has made "our dream of privatization for the people come true."

The benefits gained by the common man through the Public Offerings of the NBP, OGDCL and SSGC has proved our stance that Privatization was a pro-poor process.

It has also broadened, strengthened and deepened the capital market, which would increase the market capitalization from $26 billion to $27.25 billion with the subscription of PPL shares, which would benefit about 200,500 individuals while the government would receive proceeds worth Rs5.65 billion through this offer. The government would exercise the green shoe option of additional 5pc shares of PPL already approved by the CCoP, he said.

The minister termed the response of the people a reaffirmation of the confidence by the general public in the economic and privatization policies of the government being followed consistently for the last five years. Due to the remarkable over subscription balloting would be held at Karachi in the coming week, which would be open for the general public, he said.

Dr Shaikh said the Privatization Commission had received eight more EoIs in response to its recent invitation for fresh "Expression of Interest" for the sale of 94.8pc shares of Pak Arab Fertilizers (Pvt) Limited (PAFL) from the prospective investors including fertilizer companies, industrial companies and groups.

There were four prospective bidders who had already submitted their EoIs in response to earlier invitation in May 2002 and were pre-qualified. The total number of EoIs is now raised to twelve.

"We are providing a level playing field to the investors while ensuring maximum competition for maximizing the sale proceeds and to have quality players for our national assets for improving their performance and production.

We are not ready to sell our national assets at a throwaway price or in haste, which is provenfrom the fact that we received highest offers above our reference prices for Faletti's Hotel, AC Rohri, Thatta Cement, Hyatt Regency, HBL and other entities," the minister said.

The new parties, which have submitted EoIs along with Statement of Qualification (SOQ) for Pak Arab Fertilizers include:

1. Al-Ghurair Group of JAE,

2. Husnain Cotex Limited,

3. Jahangir Siddiqui Group,

4. Sapphire Group,

5. Siddiqsons Group,

6. SAIF Group of Companies/Haji Saifullah Group,

7. Fertilizers Company Limited and

8. Haji Ghani Usman Group while the parties already pre-qualified include

9. Consortium of Fatima Group/Reliance Exports and Nicheman Corporation (Japan),

10. Consortium of Nishat Chunian and Umer Fabrics,

11. Dawood Hercules Chemicals Ltd. and

12. Employees Management Group of Pak Arab Fertilizers Company Limited (Conditional Pre-qualified).