ISLAMABAD, April 30: The government has decided to offer 10 per cent shares of the United Bank Limited (UBL) (with a green shoe option of additional 5 per cent shares) to the general public through the Karachi, Lahore and Islamabad stock exchanges. According to the Privatization Commission (PC) the subscription for UBL shares is likely to be called by end of May 2005.

The application package for the stock exchanges and the SECP is presently being prepared with the assistance of the lead manager.

UBL, the third largest bank in Pakistan, was privatized in October 2002 through a strategic sale in which 51 per cent (264.18 million) shares were transferred along with management control, and 25.5% (132.09 million) shares each were acquired by the Abu Dhabi Group and the Bestway Group for a total price of Rs.12.3 billion.

The government currently holds 49 per cent of UBL’s total 518 million issued shares. The listing of the UBL would increase market capitalization significantly and would bring a worthwhile addition to the banking sector companies listed on the stock exchanges.—APP