July 25, 2007	Wednesday	Rajab 09, 1428

ISLAMABAD, July 24: The Privatisation Commission has conducted road shows presentation for the offer for the sale of shares of Habib Bank Limited (HBL) in Karachi and Lahore.An official announcement issued on Tuesday said the shows were held in Karachi and Lahore on July 23, 24, respectively. Subscription for the IPO will take place from July 26 to July 31, 2007.

Global Securities Pakistan Limited has been appointed as the lead manager for the transaction. 34,500,000 shares (5 per cent of the paid-up capital) of the HBL are being offered at a price of Rs235 (inclusive of a premium of Rs225 per share) and in case of oversubscription the commission may exercise the Green-shoe option and offer an additional 17,250,000 shares (2.5 per cent of paid-up capital).

Speaking on the occasion Minister for Privatisation and Investment Zahid Hamid said that the HBL’s IPO will be the largest-ever offering in the history of Pakistan’s capital markets with a transaction value of Rs12.16 billion, which is nearly twice the size of the second largest IPO - that of OGDCL. It was worth Rs6.88 billion offered in November 2003.

This transaction would also potentially benefit 517,500 investors, the largest number ever in such offerings. The offer is being made in minimum lots of 100 shares to allow participation by small investors resulting in broad-based shareholding of HBL.

It is for the first time that the trading lots in the stock exchanges for any offering by the Privatisation Commission will be 100 shares.

The minister stated that the HBL was an outstanding example of successful privatisation. The Aga Khan Fund for Economic Development purchased a 51 per cent stake in HBL in December 2003. The bank’s profitability since privatisation has improved at a compound annual growth rate of 53 per cent and advances have grown at 24 per cent per annum.