ISLAMABAD (December 01 2006): The Cabinet Committee on Privatisation (CCoP) on Thursday approved the Oil and Gas Development Company (OGDC) global depository shares (GDS) trading through the London Stock Exchange from December 6, and fixed its price at Rs115 per share ($18.90=10 shares 1 GDS). Prime Minister Shaukat Aziz chaired the CCoP meeting.

Sources said the committee okayed 10 percent (49.460 million shares for GDS). The gross proceeds of the institutional offer are expected to amount to Rs 43,332 million ($712 million) excluding the over-allotment option. With over-allotment option and the retail offering, the gross proceeds of the offer are expected to amount to Rs 49,461 million ($813 million).

Privatisation minister Zahid Hamid will make a formal announcement of the GDR launching here on Friday. The CCoP also endorsed the plan for offering five percent of the company shares for secondary public offering to retail investors at Rs110 per share in the domestic market.

For secondary public offering, the privatisation commission will offer shares to the public through domestic stock exchanges probably from third week of December. The secondary public offering will be completed before the closing of the current calendar year.

Sources told Business Recorder the privatisation commission authorities gave a detail presentation to the committee on GDS scheme, response to the company road shows and its book building process. They claimed investors' encouraging response during the company road shows held aboard recently was indicative of the GDR over-subscription by two times.

The government had started book building process for GDR from November 15 and it concluded on November 30. A team comprising officials of the privatisation commission and OGDC had returned from London Thursday morning with the report of the books' building.

The CCoP also approved bidding plan for Lyallpur Chemicals and Fertilisers Limited for December 2. The committee was informed that three parties have deposited earnest money for the company. The CCoP was also informed about the status of upcoming transactions such as PSO, NIT, SNGPL and SSGC.

Prior to the CCoP, the privatisation commission board met to endorse the GDS transaction.

It approved reopening of the PSO privatisation process to invite more parties for bidding.

The board was informed that the OGDC will be listed at the London Stock Exchange from December 6 for trading. The board was also told that the GDS was going to oversubscribe and in such case the government will use the green option of additional shares. The privatisation commission has already announced to use green shoe option in case GDS oversubscribed.

Copyright Business Recorder, 2006