ISLAMABAD, May 17: In continuation of its “Privatization for the People” programme, the Privatization Commission is set to offer 10pc (51.8m) shares of the United Bank Limited (UBL) (with a green-shoe option of additional 5pc shares) for the benefit of 388,500 citizens.

The offer was being made to the general public through the Karachi, Lahore and Islamabad Stock Exchanges at the rate of Rs50 per share. With a view to benefiting a larger cross section of the general public, only 200 shares per applicant are being offered requiring a total investment of Rs10,000 only , as approved by the Cabinet Committee on Privatization (CCOP) yesterday, announced Dr. Abdul Hafeez Shaikh, Federal Minister for Privatization and Investment here on Tuesday.

Dr Shaikh advised the Pakistani citizens, both, resident as well as overseas, to get their Computerized National Identity Cards (CNIC) and open their Bank and CDC accounts while submitting their applications. The Bankers to the offer have been issued instructions to guide and facilitate the applicants in this regard, he said.

In a press statement, the minister said that efforts were under way to initiate subscription for the Initial Public Offering (IPO) of the UBL, being targeted from June 2, 2005, and this would continue for four working days during banking hours.

Clearance of the offer for sale of shares is expected from the Karachi, Lahore and Islamabad Stock during the current week following which approval of the Securities and Exchange Commission will be sought, Presentations will be held in a number of cities and towns to inform the general public of the investment opportunity.

Dr Shaikh expressed the hope that the large quantity of 77,700,000 shares being offered would add to the liquid share float in the market and add significantly to the investor base. It would also add to the total market capitalization thereby increasing the size of the market, he said.

UBL, the third largest banks in Pakistan, was privatized in October 2002 through a strategic sale in which 51pc (264.18m shares) were transferred along with management control.

Dr Hafeez Shaikh further stated that “Privatization for the People” programme would continue with proper sequencing to benefit the common citizens, as done earlier in the public offerings of OGDCL, PPL, NBP, SSGC and Kapco.

He said that after approval of CCoP, the Letter of Acceptance (LOA) to the successful bidder for Pakarab Fertilizers Limited (PFL) has been issued on Tuesday and the buyer would make 25pc payment out of the bid price of Rs14.125 billion within 14 days after LOA while remaining 75pc payment would be made by the successful Consortium within 60 days.

PC Board recommended for approval of Cabinet Committee on Privatization (CCoP), the highest offer of Rs14.125 billion for the privatization/sale of 74,306,100 shares of Pakarab Fertilizers Limited (PAFL) received from Consortium Fatima Group with its lead bidder Reliance Export on Saturday.

PAFL is 52pc GoP-owned private limited company located at Khenewal Road, Multan in the province of Punjab. International Petroleum Investment Company of UAE (IPIC) owns the balance 48pc shares with a paid-up capital of Rs743.06m.