ISLAMABAD, June 2: The subscription for initial public offering (IPO) of United Bank Limited shares opening from June 3 (Friday) to June 8 (Wednesday) during banking hours will benefit 388,500 people.

According to a handout issued here on Thursday, the shares will be offered in lots of 200 per applicant to pass on the benefit to a large section of general public. Ten per cent shares of UBL with a green-shoe option of additional five per cent will be offered to the general public through Karachi, Lahore and Islamabad stock exchanges.

The large quantity of shares offered will also add to the liquid share float in the market and significantly to the investor base. The application forms can be downloaded from the PC website: www.privatisation.gov.pk or from the newspapers of June 3.

In order to create awareness regarding this offer, the Privatization Commission held roadshows for IPO of UBL shares in Karachi, Peshawar, Hyderabad, Lahore, Quetta and Sukkur. Next roadshow is scheduled for June 3 (today) at a local hotel in Faisalabad.

The Privatization Commission has appointed AKD Securities (Pvt) Limited as the lead manager for the IPO of UBL shares. The listing of UBL would increase market capitalization significantly and bring a worthwhile addition, rather a leader, to banking sector companies listed on the stock exchanges.

The offer is being made to the general public at a rate of Rs50 per share. With a view to benefiting a large section of the general public, only 200 shares per applicant are being offered, requiring a total investment of Rs10,000.

Pakistani citizens, both resident as well as overseas, have been advised to get their computerized national identity cards (CNIC) and open bank and CDC accounts to avoid any inconvenience while submitting their applicants. Bankers to the offer have been issued instructions to guide and facilitate the applicants in this regard.

UBL, the third largest banks in Pakistan, was privatized in October 2002 through a strategic sale in which 51 per cent (264,18 million) shares were transferred along with management control. The 25.5 per cent (132.09 million) shares 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.