KARACHI, Oct 13: Minister for Privatization and Investment Dr Hafeez Shaikh reiterated on Monday that first preference would be given to small investors in the initial public offering (IPO) of OGDCL.
He was speaking at the presentation to investors on 2.5 per cent IPO of Oil and Gas Development Company Ltd (OGDCL) at a local hotel. Secretary, Privatisation, Waqar Ahmed, additional secretary finance, Tehseen Iqbal and Managing Director OGDCL Najam Haider were also present on the occasion.
“The first preference would be given to small applicants seeking 1000 shares worth Rs32,000 in the initial offering which is scheduled by the end of October. I hope they will participate and take advantage of this opportunity,” the minister noted.
He said that the government wanted to ensure that they should have their stake in the privatization process of the country.
Dr Hafeez pointed out that in case of over-subscription, the government may consider to exercise green shoe option, selling another 2.5 per cent shares to the investors after the approval of Cabinet Committee on the Privatisation (CCoP). On this occasion, secretary, Privatization, said that the commission might consider the international floating of OGDCL share through GDR option.
Talking of menu of privatization after OGDCL, he said that Sui Southern Gas Co Ltd and PIA would be the next followed by Kot Addu Power Plant and PPL by end of this year.
He said the privatization of PSO was getting closer and the deal was to be finalized in last ten days of Ramazan or after Eid. “We have a good discussion with Kuwait Petroleum. It was a positive meeting,” the minister said.
He said that visiting team of Kuwait Petroleum also needed a mandate from the principal office and discuss other involving matters.
Dr Hafeez pointed out that the Privatization Commission could have quickly privatized PSO without resolving scores of matters. But that could have created trouble for the strategic buyer, he added.
Speaking on the occasion, managing director, OGDCL, Najam Haider said that the company has an oil production of nearly 25,000 barrels a day and 817 million cubic feet of gas per day.
Company’s share in total oil production of the country was about 50 per cent and 15 per cent of total gas production.
He said that OGDCL would start off-shore exploration near Karachi coast with the help of French oil company Total.
Drawing attention of businessmen towards trade with China, Turkey and Islamic countries the Privatization Minister said that President Pervez Musharraf has been visiting various countries including China, Turkey, Saudi Arabia to attract investment in Pakistan as well as promoting bilateral trade relations with them.
He said that China was next door neighbour and it was the need of the hour to have extended trade relations with this rising economy with a growth rate of 8 to 10 per cent.
He said Turkey was another close friend and Pakistani businessmen should focus on trade expansion with the country.
He also called for trade expansion with Muslim countries in the Middle East and Gulf.
Referring to the negligible trade between the members of Organisation of Islamic Countries (OIC), the minister called for the promotion of intra-OIC trade.
He pointed out that the share of total trade between members of Organisation of Islamic Countries (OIC) was only 10 per cent of their total global trade.—APP