ISLAMABAD, Dec 6: The Privatization Commission Board (PCB) here on Monday determined a price for the initial public offering (IPO) of 20 per cent shares of Kot Adu Power Company (Kapco) which will be finalized by the Cabinet Committee on Privatization (CCoP) in its upcoming meeting.

The decision was taken in a meeting of the board presided over by Privatization and Investment Minister Dr Abdul Hafeez Shaikh. "The matters pertaining to the IPO of 20 per cent shares of Kapco through Karachi, Lahore and Islamabad stock exchanges have been finalized and it is set for subscription in the last week of the current month as per schedule," Dr Hafeez said.

The government, he said, was strictly adhering to the policy of "privatization for the people" to benefit common citizens and small investors through a sequenced programme of IPOs and the secondary public offerings of the listed companies.

After Kapco, he said, the government would offer IPOs of United Bank Limited, State Life Insurance Corporation and the secondary public offering of Oil and Gas Development Corporation Limited, while efforts for the strategic sale of OGDCL and Pakistan Petroleum Limited would continue simultaneously.

The government, he observed, still owned 95pc shares in the state-run exploration and production company OGDCL. The soft marketing for the strategic sale of PPL was progressing ahead and efforts were underway to invite expression of interest (EoI) in the first quarter of next year and its bidding was being targeted before the closure of the current fiscal year, the meeting was informed.

During the meeting, the PCB decided to recommend a 2.5 per cent secondary public offering of OGDCL shares with a green-shoe option of additional 2.5 per cent shares for CCoP's approval.

The board agreed to include Pakistan Mineral Development Corporation's six salt and four coal mines in the privatization programme. The slat mines include: Kalabagh salt mine, district Mianwali, Punjab; Khewra salt mine, district Jehlum, Punjab; Jatta, Karak and Bahadurkhel salt quarries, district Karak, NWFP. The coal mines include: Larkana, district Dadu, Sindh; Sor-range, Sharigh and Degari in Balochistan.

The board constituted a committee comprising representatives of its members, PMDC, provincial governments and oil and gas experts to prepare the transaction structure to proceed further for their transaction.

Briefing the board regarding his meeting with the officials of Wapda held in Lahore on Saturday, the minister informed the meeting that significant progress had been made on evaluation and other issues of the power distribution companies, which was essential prior to taking those companies to the bidding point.

The Privatization of power sector entities, he said, was imperative for enhancing, improving and upgrading the system capacities through quality players from the private sector.

The PC Board also reviewed the progress and status of Pak Arab Fertilizer Limited, Carrier Telephone Industries, Pakistan Engineering Corporation and various other ongoing and upcoming transactions. The meeting reviewed the list of new entities for inclusion in the sell-off programme.