ISLAMABAD, Sept 25: The Privatization Commission (PC) has held road shows to disinvest the Government of Pakistan’s 5 per cent shares in the National Bank of Pakistan (NBP) and now the offer for sale document would be published between September 28- 29.

The subscription, according to a PC announcement, would remain open from October 7-9, 2002.

The Secretary, Privatization Commission, Ahmad Waqar, in a statement on Wednesday said that smaller shareholders of NBP would get the voting rights under the Bank Nationalization Act as soon as 26 per cent shares in the Bank were divested.

He clarified that in this connection either the Act would need to be amended or additional shares would have to be offered. The government would consider the options in due course. The government intended to privatize NBP eventually, he said.

The representatives of Elixir Securities and THK (Taseer Hadi Khalid KPMG) the Lead Manager for this transaction while making a detailed presentation to the secretary, PC, said that Rs21 was an attractive offer price and it would enhance the value for all shareholders. NBP has the cheapest multiple in the market as compared to other listed banks.

During the restructuring process, 20 per cent NBP employees (3010) had availed Voluntary Hand Shake and 200 branches had been closed down, thus saving Rs1 billion a month, which was a part of cost restructuring exercise. The branch network had been rationalized and currently the bank was operating with 1200 branches. In the middle of the next year the bank would have corporate branches. The deposit growth was impressive during the first six months of the current financial year and the bank now holds 22 per cent of market share with 9 million customers, 32 per cent in terms of transaction and 38 per cent as regard to bill payment.

The credit rating of the bank had been upgraded from AA- to A1+ due to its improving profitability and continued improvement in the performance. For the second consecutive year NBP had been recognized as the Best Bank by ‘The Banker’ (UK) 2002.

The secretary, PC said that the government has shown its commitment in the past to implement privatization programme through the disinvestment of public sector entities.

Ahmad Waqar has been quoted as having informed the other day the members of Karachi Stock Exchange, professionals, bankers and prospective investors at KSE regarding the second offering of 5 per cent (18. 652) Government of Pakistan shares in National Bank of Pakistan (NBP) to the general public with a green shoe option of additional 5 per cent shares in case of over subscription.