ISLAMABAD, Oct 5: Privatization Commission has made all necessary arrangements to once again offer 5 per cent government’s 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.

The subscription list will open from Monday with the commencement of banking hours and will close on October 9 at the close of banking hours. This offer is being made to the general public on best effort basis at a fixed price of Rs21 per share. The market price of NBP’s shares as at September 23, 2002 was Rs22.90. The break up value of the bank’s share as at June 30, 2002 is Rs33.62 excluding surplus on revaluation of fixed assets.

The Offer of Sale Document (OFSD) published a week ago in the national dailies include information regarding approval and clearance, share capital and related matters, commission, brokerage and other expenses, history and prospects, financial highlights, management and related matters and the instructions regarding application and transfer.

The application forms can be obtained from the specified banks or the Karachi, Lahore and Islamabad Stock Exchanges.

According to a PC announcement, Rs21 per share is an attractive offer price and it will enhance the value for all shareholders. NBP has the cheapest multiple in the market as compare to other listed banks.

Elixir Securities and THK (Taseer Hadi Khalid KPMG) is the Lead Manager for this transaction. Keeping in view the previous IPO of NBP shares, the additional offer for sale of GoP’s shares in NBP is expected to get an overwhelming response. The Initial Public Offering (IPO) undertaken by Privatization Commission in November 2001 of 5-10 per cent shares of NBP was six times oversubscribed. The performance of the bank reflects that during the restructuring process the NBP while being transformed into a commercial bank, 20 per cent employees (3,010) have availed Voluntary Hand Shake and 200 branches has been closed down, thus saving Rs1 billion a month, which was a part of cost restructuring exercise.

The branch network has been rationalized and currently the bank is operating with 1,200 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 has been upgraded from AA- to A1+ due to its improving profitability and continued improvement in the performance. For the second consecutive year the bank had been recognized as the Best Bank by ‘The Banker’ (UK) 2002.