ISLAMABAD, Oct 25: Federal Minister for Privatization and Investment Dr Abdul Hafeez Shaikh has directed the Privatization Commission to make the Initial Public Offering (IPO) of 20 per cent shares of Kot Addu Power Company (Kapco) through stock exchanges soon after Ramazan.
An official handout issued here on Monday said the minister also directed that preference should be given to smaller applicants in line with government policy of "Privatization for the People."
Mr Shaikh issued these directives in a meeting called to review the progress and the status of the privatization process of various ongoing and upcoming public sector entities. The Kapco issue, being attractive for the investors as were the earlier transactions like OGDCL, SSGC and PPL, would also receive overwhelming response, he hoped.
The minister said that Kapco, with strong fundamentals and sound operational record, would increase market capitalization significantly and would bring a worthwhile addition, rather a leader, to the power sector companies listed on the stock exchanges. The large quantity of shares offered would also add to the liquid share float in the market, he added.
Kapco, with a power generation capacity of 1,600mw, was privatized in 1996 with the transfer of management control to M/s International Power Plc. The government realized proceeds worth Rs9 billion through this divestment and now holds 64 per cent of Kapco's total 880 million issued shares.
The minister directed the concerned officials to maintain the momentum of such public offerings with proper sequencing and to ensure the early completion of IPO's of United Bank Limited, State Life Insurance Company (SLIC) and Pakistan Steel shares. The government was determined to continue with such public offerings to transfer the benefits of privatization to the common man and to make them partners in the ownership of public sector entities, he said.
He said that the interest of the employees would be safeguarded while privatizing Karachi Electric Supply Company (KESC) and their genuine concerns would be addressed. Efforts were also being made to facilitate the prospective bidders for transparent bidding of KESC, he added.
The meeting was informed that in response to the final invitation to the qualified strategic investors, consortia of strategic/ financial investors interested in acquiring 51 per cent interest in Jamshoro Power Company (JPC) including management control, 11 Expressions of Interest (EoIs) have so far been received while the last date to receive EoIs and the submission of statement of Qualification (SoQs) is November 30, 2004.
Parties with relevant creden-tials submitting EoIs have been dispatched Request for Statement of Qualification (RSOQ). Those who have already submitted EoIs and have been pre-qualified need not apply afresh. Jamshoro Power Company Limited holds properties, rights, assets and liabilities of two power stations. Jamshoro, an 880mw gas and furnace oil-fired power plant and Kotri, a 174mw fired power plant.
The assets are strategically positioned in Pakistan Grid.
The Jamshoro facilities are located 18 km from Hyderabad while Kotri facilities are located within the environs of Hyderabad.
The minister also directed to expedite the privatization of CTI. It may be recalled that 53 per cent shares held by Pakistan Telecommunication Company Limited (PTCL) in Carrier Telephone Industries (CTI) have been offered for sale on as "a going concern" basis with management control.