ISLAMABAD, Dec 31: Another five per cent shares of Oil and Gas Development Company Limited (OGDCL) would be sold to general public, and State Life Insurance Corporation (Slic) and Pakistan Steel has been included in the privatization list.

Decision to this effect was taken here on Friday at a meeting of the Cabinet Committee on Privatisation (CCoP) presided over by Prime Minister Shaukat Aziz. The meeting also approved offer price for the sale of 20 per cent shares of Kot Addu Power Company and reference prices for Karachi Electric Supply Corporation (KESC) and Pak-Arab Fertilizer Limited (PAFL). It also decided to include 10 salt and coal mines of Pakistan Mineral Development Corporation (PMDC).

An official statement said the meeting approved the offer price for the initial public offering (IPO) of 20 per cent shares of Kapco, including a 10 per cent main offer with additional 10 per cent green shoe option for the general public in small lots of 500 shares each to benefit the common man.

The Kapco shares would be offered to the public through Karachi, Lahore and Islamabad Stock Exchanges in January 2005. With this transaction, a total of 56 per cent shares of Kapco would go to the private sector. Around 36 per cent shares of this company were sold to the National Power of UK in mid 1990s.

The CCoP also approved the secondary public offering of 2.5 per cent share of the OGDCL through main offer with additional 2.5 per cent shares through green shoe option.

As such, a total of 215 million more shares would go public in addition to 215 million shares (five per cent) already sold through the initial public offering last year. Thus, a total of 430 million or 10 per cent shares of the OGDCL would stand transferred to the general public on completion of secondary option.

The CCoP also approved inclusion of IPOs of State Life Insurance Corporation (Slic) and Pakistan Steel in the privatisation programme. The Slic holds around Rs96 billion of the general public in its life insurance fund and has more than 90 per cent market share in life insurance sector. The meeting noted that public offerings of Kapco, Slic, PS and OGDCL would significantly add to the market.

The CCoP also agreed to include six salt mines and four coal mines of Pakistan Mineral Development Corporation (PMDC)for privatization. These include Kalabagh Salt Mine near Mianwali, Khewra Salt Mine in district Jhelum, Warcha Salt Mine in district Khushab (all in Punjab), Jatta, Karak and Bahadurkhel Salt Quarries in district Karak (in NWFP), Lakhra Coal Mine in Dadu (Sindh) and Sor-range, Sharigh and Degari Coal Mines in Balochistan.

The Privatization Commission has already constituted a committee comprising representatives of privatization board members, PMDC, provincial governments and oil and gas experts to prepare these mines and their transaction structure to proceed further for privatisation.

The CCoP also reviewed the matters pertaining to the privatization of Pak-American Fertilizer Limited, Pakistan Engineering Company and progress of privatization and directed to accelerate the pace of sale process.

PPI ADDS: Karachi Stock Exchange (KSE) has cleared Offer for Sale Document of Kot Addu Power Company Limited (Kapco). The total issued, subscribed and paid-up capital of the company is Rs8,802.532m, out of which 88.025m ordinary shares of Rs10 each, comprising 10 per cent of the company's total paid-up capital is being offered to general public by Privatization Commission, on behalf of Wapda at an offer price of Rs30 per share.