NBP, HBL and Kapco GDRs planned

The government is planning to launch Global Depository Receipts (GDRs) of National Bank, Habib Bank and Kot Addu Power Company Limited (Kapco) for the financial year 2011-12, it is learnt. Sources said the Privatisation Commission had recommended to the recently held meeting of the Cabinet Committee on Privatization (CCoP) with Finance Minister in the chair to carry out capital market transactions of State Owned Entities (SOEs) in the next fiscal year for estimated value of $254 million.
This was proposed that sale of 5 percent shares of each Kapco, HBL and NBP to the international investors through GDRs would fetch $151 million. The proposed date for listing of Kapco GDR is September 11, HBL, January 11 and NBP, June 11 of the financial year 2012. The total shareholding of the government is 40 percent in Kapco, 37 percent in HBL and 66 percent in NBP. The total earning from the GDRs of three entities has been estimated at $151 million.
The government plans to undertake initial public offering (IPO) of Islamabad Electric Supply Company (Iesco) and Faisalabad Electric Supply Company (Fesco), July 11 and September 11 to divest 10 percent shares of each company with an estimated value of $30 million and $25 million, respectively. The IPO of Pak-Arab Refinery (Parco) and GHPL have been proposed in November 11 and January 12 for the financial year 2012, however, divestment of their shares was yet to be determined. The IPO of National Insurance Company Limited (NICL) would be launched on March 12 to offer 10 percent shares of $20 million at the local bourses.
The Special Public Offering (SPO) of the HBL would also be launched for offering of 2 percent shares to local investors and the proposed date of launching is May 12 of financial year 2012. The earning through this transaction is estimated at $28 million.
The Privatisation Commission had also recommended that the PC should be allowed to conduct a Non-Deal Road Shows (NDRs) at major international financial centers such as Hong Kong, London and New York in April and May 2011.
This was also suggested that a monitoring committee comprising minister for privatisation, deputy chairman Planning Commission, secretary finance, secretary privatisation, governor State Bank of Pakistan (SBP) and the SECP chairman should be constituted to supervise the overall process.