The Member Privatisation Commission, Pir Saad Ahsanuddin has said that the commission has raised Rs 60.7 billion through initial and secondary public offerings in the last 18 months.
Speaking at the first road show, held in connection with public offering of 5-10 percent Class-A shares of Pakistan International Airlines Corporation (PIAC) here on Monday, Ahsanuddin said that since 1999 the commission has generated Rs 134 billion through privatisation process, of which Rs 42 billion were raised through IPOs, which is 34 percent of the total amount fetched under this head.
The sale of PIAC Class-A shares is yet another initiative taken by the government and hopefully it would be a 'safe investment' for the masses, he said.
'The Privatisation Commission, acting on behalf of the Government of Pakistan, is offering 5 percent of the outstanding shares of PIAC, to the public at fixed price of Rs 20/- per share through public offering at local stock markets.
The government will exercise a green show option of additional 5 percent shares, in case of over-subscription. The public subscription is scheduled for June 7 to 9, 2004. KASB is acting as lead manager to the offer on behalf of the PC.
The Deputy Managing Director PIAC, Kalim Malik said at the occasion that during the last 9 quarters PIAC has demonstrated an encouraging revenue performance. Highlighting the financial performance, he said that due to 9/11 when all major airlines of the world had to ground their aircraft, PIA addressed the problems successfully.
After taking over in 1999, the present management initiated various measures to achieve a turnaround and succeeded in converting the financially battered airline into a profit making entity, he said.
Talking about the financial restructuring, Kalim Malik said the operational performance and profitability of PIAC eroded over the later part of the 1990s on account of variety of factors due to which it suffered heavy losses which led to an accumulated loss of Rs 12.1 billion at the end of FY 2001.
Realising the importance of the financial viability of PIAC, the government appointed professional management.
The new management remained successful in overcoming the operational as well as financial hurdles through operational restructuring, revenue enhancement initiatives, and financial restructuring and administrative reforms. Due to such corrective measures the PIAC share that was of Rs 2.5 in the stock market has now swelled to Rs 23-24, which is an achievement.
As far as financial recovery of PIAC was concerned, it registered a profit of Rs 3.7 billion for the year ending December 31, 2003.
In 2003, its employees were given 20 percent raise in allowances and pay. In February 2003, it floated TFCs of Rs 15.14 billion, which were highly over subscribed.
Likewise, Malik pointed out that PIAC finalised a loan of $351 million with Exim for purchase of new Boeing 777. At present, PIAC is operating to 27 international destinations and this frequency will be enhanced to 50.
Later talking to newsmen, he said that PIAC had no plan to withdraw the subsidy given on flights in northern parts of the country.
He said that Fokker aircraft operating on these routes were being replaced with Turbo props.
PPI adds: The PC and Lead Manager KASB Securities for the PIAC shares, public offering will hold second road show at Marriott Hotel in Islamabad on Tuesday. Federal Minister for Privatisation & Investment Dr Abdul Hafeez Shaikh will address the event while PIAC management, members PC board, representatives of stock exchanges, Brokerage Houses will be present on the occasion.
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