ISLAMABAD, June 12: The Cabinet Committee on Privatisation (CCoP) on Tuesday allowed the launch of 25-30 per cent Global Depository Shares (GDS) of the United Bank Limited (UBL) in London from Wednesday. The process will be completed by June 23.
Minister for Privatisation Zahid Hamid told a press conference after the CCoP meeting that the book-building process for the transaction would be completed on June 22 and the next meeting of the CCoP will finalise the pricing.
He said it was peak time in the context of investor confidence. The time is more opportune for the fact that UBL’s share price had appreciated by 77 per cent during the current year because of its good performance.
The government has a total of about 44.5 per cent shares in the privatised-UBL. Now, it would offer a minimum of 25 per cent shares in the form of global depository shares that could be increased to a maximum of 30 per cent, depending on the response from investors.
In both cases, the government shareholding in the country’s second largest bank would fall to below 20 per cent.
The minister said road shows for the transaction would begin on Wednesday in London, New York and the rest of the world as usual and the book-building process will close on June 22. “Final pricing of the issue would be determined on June 23 and Pakistan would get its proceeds within the current fiscal year ending June 30”.
Mr Hamid said the CCoP also approved the initial public offering (IPO) of Habib Bank Limited (HBL). He said the final size and pricing of the HBL offering would be decided in the next CCoP meeting and this would be the largest IPO in the history of Pakistan.
The minister said the meeting also reviewed the privatisation of the Pakistan State Oil (PSO) and approved Board of Privatisation Commission’s recommendations to hold pre-bid meeting with all the bidders on June 20.
He said some of the bidders had demanded one or two weeks’ delay in the bidding. It would be decided at the June 20 pre-bid meeting in consultation with the bidders as to when the bidding for the majority shares along with management control should be held.
He said a few months after the Habib Bank IPOs, its GDR would be issued, to be followed by GDRs of the National Bank of Pakistan – the country’s largest bank. He said the proposals for the appointment of NBP transaction had been received recently and were under scrutiny at present.
He said the GDRs of the Kot Addu Thermal Power Company and SME-Bank were also planned to be issued early next year. Besides, the IPO for State Life Insurance Corporation of Pakistan (SLIC) and Pakistan Steel would also be initiated as soon as possible while the bidding for the Jamshoro Thermal Power Station would also be held by July end or early August.
Likewise, the sale of Faisalabad Electric Supply Company (Fesco) has again been put in the active privatisation list after the resolution of tariff issues.
The minister said that contrary to general perception, the privatisation process had yielded Rs86 billion in first 10 months of the current year, and the overall proceeds would be around Rs120 billion by the end of the fiscal year with the arrival of UBL and other proceeds, which would be a record yield in the 15-year history of the privatisation in Pakistan.
Responding to a question as to why the government projected revised privatisation proceeds at Rs75 billion in the budget announced last week when proceeds in 10 months had amounted to Rs86 billion and expected to rise to Rs120 billion, the minister said the finance ministry had completed its budget exercise much earlier.
