ISLAMABAD, Sept 7: The Privatization Commission will make the Initial Public Offering (IPO) of 20 per cent shares of Kot Addu Power Company (Kapco) to general public through Karachi, Lahore and Islamabad stock exchanges in the third week of October this year.

Privatization and Investment Minister Dr Hafeez Shaikh while chairing a meeting held here on Tuesday to review the progress and status of the privatization process of various ongoing and upcoming public sector entities, directed the Privatization Commission to hold the Kapco IPO with preference to smaller applicants.

The minister said that Kapco being a highly profitable company with a good operational record would increase market capitalization significantly and bring a worthwhile addition, rather a leader, to the power sector companies listed on the stock exchanges. The large quantity of shares offered would also add to the liquid share float in the market, he added.

Kapco is a large IPP with a power generation capacity of 1,600 mw. It was privatized in 1996 and the government transferred management control to International Power Plc along with 26 per cent shares.

Subsequently, 10 per cent additional shares were also divested to the new owners. The government realized proceeds worth Rs9 billion through this divestment and now holds 64 per cent of Kapco's total 880 million issued shares.

Dr Hafeez Shaikh directed the officials concerned to rectify the problems recently faced by the general public during the PPL IPO in the submission of applications at banks and receiving the shares or refund of their deposits.

Efforts should be geared up by identifying new entities for more IPOs to transfer the benefits of privatization to the common man, he said. The minister also gave the target to hold the bidding of KESC by the middle of October 2004. He instructed to hold a final pre-bid meeting of consortia of three international parties in the third week of the current month.

The meeting was informed that a final invitation has been given to the qualified strategic investors, consortia of strategic/financial investors interested in acquiring a 51 per cent interest in Jamshoro Power Company (JPC), including management control, to submit their EoIs latest by November 30, 2004.

The minister also directed to expedite the privatization of Carrier Telephone Industries (CTI). Around 53 per cent shares held by Pakistan Telecommunication Company Limited in CTI have been offered for sale on as "a going concern" basis with management control.

It is expected that bidding for CTI will be held in the next 4-6 weeks. The meeting also reviewed the progress and status of the privatization process of FESCO, OGDCL, PSO, SSGC, SNGPL and NITL. -APP