UBL IPO subscription to start from June 2

DUBAI — The subscription for the Initial Public Offering (IPO) of United Bank Limited (UBL), will start from June 02 and it would continue for four working days during banking hours across the country, Khaleej Times learnt yesterday.

By Muzaffar Rizvi

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Published: Thu 19 May 2005, 10:19 AM

Last updated: Thu 2 Apr 2015, 5:09 PM

The Privatisation Commission of Pakistan is set to offer 10 per cent (51.8 million) shares of UBL with a green shoe option of additional five per cent shares and it would benefit 388,500 citizens of the country.

The offer is being made to the general public through the Karachi, Lahore and Islamabad Stock Exchanges at the rate of Rs50 per share.

With a view to benefiting a larger cross section of the general public, only 200 shares per applicant are being offered requiring a total investment of Rs10,000 only, announced Dr Abdul Hafeez Shaikh, Federal Minister of Pakistan for Privatisation & Investment yesterday.

The minister advised the Pakistani citizens, both, resident as well as overseas, to get their Computerised National Identity Cards (CNIC) and open their bank and CDC accounts to avoid any inconvenience while submitting their applications.

UBL, the third largest banks in Pakistan, was privatised in October 2002 through a strategic sale in which 51 per cent (264.18 million) shares were transferred along with management control. About 25.5 per cent (132.09 million) shares each were acquired by the Abu Dhabi Group and the Bestway Group for a total price of Rs12.3 billion. The government currently holds 49 per cent of UBL’s total 518 million issued shares.

Dr Shaikh hoped that the large quantity of 77,700,000 shares being offered would add to the liquid share float in the market and add significantly to the investor base. It would also add to the total market capitalisation thereby increasing the size of the market, he added.

Meanwhile, after the approval of CCOP, the Letter of Acceptance (LoA) to the successful bidder for Pak-Arab Fertilizers Limited (PFL) issued on Tuesday. The buyer would make 25 per cent payment out of the bid price of Rs14.125 billion within 14 days while remaining 75 per cent payment would be made by the successful Consortium within 60 days.

PC Board recommended for approval of Cabinet Committee on Privatisation (CCOP), the highest offer of Rs14.125 billion for the privatisation of 74,306,100 shares of PFL received from Consortium Fatima Group with its lead bidder Reliance Export on Saturday. The PFL is 52 per cent government of Pakistan owned private limited company. International Petroleum Investment Company of UAE (IPIC) owns the balance 48 per cent shares with a paid-up capital of Rs743.061m.

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