KARACHI, July 28: Looking at the incoming numbers on Wednesday, most market gurus said they wouldn't be surprised if the total number of applications for shares in Pakistan Petroleum Limited (PPL) fell in the region of 800,000.

That meant that one-in-four applicants stood a chance of doubling his investment of Rs27,500 for 500 shares in about a month's time. The Privatization Commission had opened up its books for public to apply for 205,751 shares in lots of 500 shares each in the company that owns and operates the country's largest natural gas field. The offer was open for four days, July 19 to 22.

If the estimates for final figures - which would likely be confirmed by the evening on Thursday - proves accurate, one out of four applicants would succeed at the balloting, which is expected to be held in the first week of next month. Offered at Rs55 per share, the stock closed at Rs110 on Wednesday on the provisional counter, with trading recorded in 8 million shares.

By mid-day Wednesday, when the PC was still counting, it said that record 630,000 applications had been received, which already represented the highest number of applications for any Initial Public Offering (IPO) in the country.

That surprised some people who had made conservative estimates of 550,000 total applications, a day earlier. But comparison were possibly being drawn with the public response to the previous best total of 380,000 applications received in response to the offer of equity in Bank AlFalah.

In a spate of privatization of state-owned enterprises-whether in part or full- the government is divesting 15 per cent stock (10 plus 5 per cent green shoe option) from its almost totally held equity of Rs6.850 billion in the PPL.

The 15 per cent shares in PPL would amount to Rs1.028 billion. Terming it a 'pro-poor policy' the government indicated that bigger investors need not apply by announcing that applicants of the smallest lot of 500 applications would only be entertained.

Pakistan Petroleum Limited is the largest producer of natural gas in the country and account for around 40 per cent of Pakistan's indigenous gas production. Besides numerous other fields, PPL owns 100 per cent stake in Sui gas field, which was regarded as the largest gas discovery in the world at the time of its inception in 1952.

For financial year 2003, PPL had earned net profit of Rs4.2 billion (earning per share: Rs6.11) on sales valued at Rs12 billion. The company also announced cash payout at Rs3 per share.