The Cabinet Committee on Privatisation (CCoP) on Monday approved a plan for subscription of 115 million Pakistan International Airline (PIA) shares from June 7 this year.
The subscription would continue up to June 9 in small lots of 500 shares. It would be the first lot offered, in minimum of 500 shares, to benefit the small investors.
The committee also decided that offering of PPL and Kapco shares be targeted for June and July, respectively.
The CCoP meeting, chaired by Finance Minister Shaukat Aziz, discussed sale of Pakistan Petroleum Limited (PPL) and Kot Adu Power Company (Kapco) shares and finalised the requirements.
The CCoP reviewed the performance of these companies in the overall economic scenario, which was improving with growth in overall manufacturing of 17.1 percent and overall GDP growth of over 6 percent resulting in double-digit growth in energy consumption.
The CCoP also reviewed the overall progress of the privatisation transactions and noted with satisfaction the performance of the units privatised a year ago. The meeting was informed that so far an amount of Rs 135 billion has been realised through this process.
During the first 10 years privatisation process received Rs 58.47 billion and during the three years of government the proceeds stood at Rs 35.3 billion and the present government got Rs 41.3 billion over a period of 18 months, which shows an up word trend and indicates increase in the momentum.
The Minister appreciated the performance of Privatisation Commission and encouraged it to continue the path of growth and performance.
The meeting was attended by federal ministers for privatisation and investment, water and power, federal secretaries of the respective ministries, deputy chairman of Planning Commission and other officials.
Our Karachi correspondent adds: The Privatisation Commission through a letter on Monday informed the Karachi Stock Exchange (KSE) that the offer price for PIA has been fixed at 20 rupees a share.
The PC plans to sell 5 percent shares through stock market and will also exercise green shoe option.
According to an analyst as per the closing price of PIAC shares on Monday at Rs 22.95, the PC has planned to sell 10 percent or 57.356 million shares at 15 percent discount.
The company's share price on Monday fell 1.20 rupees to 24.15 rupees on a turnover of 30.476 million shares.
During the first quarter the airline total revenue for the quarter amounts to Rs 14.59 billion as against Rs 13.05 billion in the corresponding quarter of last year.
This represents an increase of 11.8 percent over the same period last year. Costs and expenditure for the current quarter amount to Rs 12.68 billion against Rs 11.07 billion last year.
In the first quarter the airline achieved scheduled passenger traffic growth of 16.4 percent over the same period last year against an increase of 16.9 percent in capacity.
The airline has successfully inducted three new Being 777-200ER aircraft and two used Airbus A310-300 aircraft in its fleet during this quarter. Three more A310-300 aircraft will be inducted in the fleet shortly. The replacement of Fokker F-27 fleet is being actively pursued as well.
Once the valuation of available options is completed the replacement aircraft would be selected and induction is expected to take place before the end of the year.
Comments
Comments are closed.