ISLAMABAD, April 23: The government on Saturday decided to list the shares of United Bank Limited at the Karachi, Lahore and Islamabad stock exchanges and offer 10 per cent shares to the general public with a green-shoe option of additional five per cent shares.

The transaction is expected to be taken to the market in June 2005, says a handout issued here.

The Privatization Commission has appointed AKD Securities (Pvt) Limited as the lead manager for the initial public offering (IPO) of UBL after a thorough comprehensive prequalification process.

UBL, the third largest banks in Pakistan, was privatized in October 2002 through a strategic sale in which 51 per cent (264.18 million) share each were acquired by the Abu Dhabi Group and the Bestway Group for a total price of Rs12.3 billion. The government currently holds 49 per cent of UBL’s total 518 million issued shares.

UBL is a highly profitable bank with a good operational record. If the market response to the recent offerings of OGDCL, SSGC, PPL and Kapco gives any indication, an offer of shares of a bank like UBL would most likely receive a heavy response from the general investors, the handout says.

The listing of UBL would increase the market capitalization significantly and bring a worthwhile addition, rather a leader, to the banking sector companies listed on the stock exchanges.

The shares will be offered in lots of 200 per applicant to pass on the benefit to a large section of the general public. Roadshows will be conducted in a number of cities for informing the public and attracting maximum participation. The large quantity of shares offered will also add to the liquid share float in the market and add significantly to the investor base, the handout adds.