CCoP approves strike price for PPL shares

ISLAMABAD: The Cabinet Committee on Privatisation (CCoP) on the recommendation of the Board of Privatisation Commission (PC) has approved strike price of government stakes in Pakistan Petroleum Limited (PPL) to Rs 219 per share of and allocation of shares to the successful bidders as specified in the Offer for Sale Document (OFSD). 
This approval was made during a meeting of the CCoP, which was chaired by Minister for Science and Technology Zahid Hamid on Saturday. 
Minister of State for Privatisation Muhammad Zubair in a detailed briefing explained the transaction structure of PPL offered 70 million shares to international and domestic institutional investors and High Net Worth individuals (HNWI). 
The CCoP was informed at the floor price of Rs 205 per share total orders of Rs 29.33 billion (143 million) have been received i.e a coverage of 2.04x the offer size at the ‘floor price’. 
CCoP was informed at the strike price of Rs 219 per share and total orders of Rs 15.98 billion (73 million) shares have been received, i.e a coverage of 1.04x the offer size at the strike price. He informed this was the largest ever book building in the capital market, which Pakistan has undertaken and it has been completed in a successful manner.
He appreciated the hard work done by the PC and the financial adviser in successfully completing the transaction in a most transparent system. 
Book Building process for the offer of government shares in PPL transaction concluded at 5pm on Friday June 27, 2014. The ‘strike price’, price of PPL share was determined/discovered on the basis of Book Building through the Dutch Auction Method.
The transaction marketing road shows were held in Karachi, Lahore, Islamabad, Sialkot and Faisalabad from June 19, 2014 to June 23, 2014. PC had got requisite approvals from stock exchanges and Securities and Exchange Commission of Pakistan relating to the transaction structure, allotment mechanism and other approvals required for the transaction.
Minister for Information, Broadcasting and National Heritage Senator Pervaz Rasheed, Federal Minister for Textile Industry Abbass Khan Afridi, Finance Secretary Dr Waqar Masood and federal secretaries of various ministries were in attendance.

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