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SDO of OGDC shares oversubscribed 38 percent

Staff Report

ISLAMABAD: The secondary domestic offering of OGDC shares is oversubscribed by 38 % as the applications received have amounted to Rs 3.268 billion while the amount required to be realized through this retail offering was Rs 2.365 billion.

The total number of applications received is 34,758 comprising 33,715 applications for 500 shares and 1,043 applications for over 500 shares, according to a Privatization Commission (PC) statement issued here on Monday.

The over-subscription of OGDCL’s domestic offering is a significant success and it sends a strong signal of investor confidence in the company and the economic reforms and policies of the government of Pakistan. The government will continue to vigorously pursue its approved privatisation program, said Zahid Hamid, Minister for Privatization and Investment, while commenting on the success of the recent Domestic Retail Offering. It would certainly set the pace for the other upcoming initial and retail/ domestic offerings, he added.

The minister on Monday announced the successful over-subscription for the domestic retail offering of ordinary shares of the Oil and Gas Development Company Limited (OGDCL). Giving details of the final domestic retail offer, he said that the offer was priced at PKR 110/ per share, which was at a discount to the market price and to the price at which shares/Global Depository Shares were allocated to the institutional investors on November 30, 2006.

The total number of OGDC shares offered by the Privatization Commission was 21,505,000 million. The offer represents 0.5% of OGDC’s outstanding shares. The offer was launched through publication of Offer for Sale Document (OFSD) on December 30, 2006. The Abridged OFSD was published in the leading newspapers in Pakistan for the general public. The subscription dates for the offer were from Jan11 to 13. The management of OGDCL and BMA Capital held roadshows for the general public at all the three stock exchanges where company presentations were given to the retail investors.

All applications for 500 shares will be accommodated. Applications for over 500 shares will be allotted on pro-rata basis according to the basis of allotment published in the OFSD. The shares will be transferred to the successful applicants within 30 days from the close of subscription, ie, Feb 12.

BMA Capital is the lead manager for the domestic offering. BMA Capital, Citigroup and Goldman Sachs International are joint lead managers with Citigroup and Goldman Sachs International acting as joint global coordinators and bookrunners for the international offering and BMA Capital as lead manager and bookrunner for the domestic offering and joint lead manager of the international offering.

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