CCoP endorses $650.3 million UBL GDRs: PSO sell-off date shortly, says Zahid

The government has raised $650.3 million from the sale of United Bank Limited (UBL) global depository receipts (GDRs). The Cabinet Committee on Privatisation )CCoP) endorsed the outcome of UBL GDRs.
Later on, Privatisation Minister Zahid Hamid told a press conference that CCoP had approved UBL GDRs and Habib Bank Limited (HBL) initial public offering (IPO).
He said that the Privatisation Commission held roadshows encompassing global financial centers including Hong Kong, Singapore, London, Dubai and New York for UBL GDRs and their outcome was highly encouraging. Zahid Hamid said UBL GDRs would start conditional trading on London Stock Exchange (LSE) from June 25 and this would be followed by full trading from June 29.
He said this launch has marked another landmark transaction of the privatisation program in the international market after the listing of OGDC at LSE in December last year, which attracted $811 million.
Zahid said that international investors from US, UK, continental Europe, Middle East and Asia bought GDRs equivalent to UBE shares priced at Rs 195 a share, amounting to divestment of a 25 percent of the total paid up capital of UBL.
Each GDR represents four underlying shares of UBL. The GDRs price was S 12.8543 each. The transaction attracted gross demand of over $2.5 billion from a mix of to quality global funds, Asian funds and financial sector dedicated specialists, the largest ever book for a Pakistan equity offering.
The GDR was attractively priced at approximately 5.Ox ''06 price to book value per share, which is higher than the valuation of similar transactions elsewhere/globally.
He said the offer price represented premium of 2.6 percent to the average price of the 30 days price, 9.2 percent to 60 days price and discount of about 5.3 percent to Friday''s local closing price of Rs 206 per share. He said CCoP approved HBL IPO of 5 percent of total shares with a green shoe option of 2.5 percent (51.75m shares) at an offer price Rs 235 per share and the total size would be Rs 12.2 billion.
HBL offer for sale by shares will be the largest offering in Pakistan in terms of both value and number of shares offered. He said for the first time ever shares are being offered in lots of 100 and multiples of 100 up to 500 shares, thereafter multiples of 500 shares.
The marketable lot for trading in the Stock Exchanges will be 100 shares, allowing case of entry and exit to successful applicants of 100 shares. The application size of 100 shares would make the subscription affordable for the common citizens and would allow them an opportunity to become a shareholder of one of the largest banks of Pakistan. This structure will potentially benefit over 517,000 investors, the largest number ever in such transactions.
The Minister said HBL IPO will be made in 2-3 weeks. The minister added that the CCOP was also apprised of the suggestions and proposals came out of the deliberations of the pre-qualified bidders during the pre-bid conference of PSO transaction and said that all stakeholders have been asked to expedite the resolution of all the issues in this regard. He said Privatisation Commission is going to announce PSO bidding shortly.