ISLAMABAD, Jan 3: The government has fixed the price of Kot Addu Power Company (Kapco) at Rs30 per share to off-load its up to 20 per cent through the initial public offering (IPO) later this month.
Applications can be submitted for buying minimum 500 shares only, requiring an investment of Rs15,000 per application. Twenty per cent shares of Kapco would be offered to the general public resulting in potential proceeds of up to Rs5.28 billion.
The Islamabad, Lahore and Karachi stock exchanges have already granted clearance to the offer for sale of Kapco's shares. Subsequent to completion of some additional formalities, clearance from the Securities and Exchange Commission of Pakistan (SECP) is also being sought. Subscription for Kapco's shares is expected to take place during this month.
A large number of banks have been appointed as bankers to the offer in order to facilitate the general public in subscription which is likely to remain open for four to five days.
The government has claimed that the listing of Kapco would increase market capitalization significantly and is likely to receive a massive response from the general public as it was selling the shares under its "Privatization for the People" policy.
The listing of Kapco would bring a worthwhile addition to the power sector companies listed on the stock exchanges. The large quantity of shares offered would also aid to the liquid share float in the market.
