The sponsors of Pakgen Power Limited have offered 37.208 million shares to the general public through initial public offering (IPO) at an offer price of Rs 19 per share, inclusive of a premium of Rs 9 per share. The public subscription of the offered shares will be held on June 14 and 15, 2011, all across Pakistan. It is the second IPO of the current fiscal year.
In this regard, Pakgen Power held analysts briefing to promote its upcoming Offer for Sale of shares to the general public here on Wednesday, which was attended by prominent personalities including Mohammad Mansha, Chairman of MCB Bank, Arif Habib, Chairman and CEO of Arif Habib Corporation, Muneer Kamal, Chairman of Karachi Stock Exchange, Nadeem Naqvi, MD of KSE, and a number of KSE members, analysts and investors.
Pakgen Power has applied for listing at both Lahore Stock Exchange and Karachi Stock Exchange, and this has been approved by both exchanges. The senior management, advisors and other officials represented Pakgen, an associate company of one of the largest and most diversified business house Nishat Group explained in detail the business operations and Offer's description.
Mian Mansha on the occasion expressed hope for a positive outlook for Pakistan's economy. He also briefed the participants about the recent developments in respect of alternative energy as a source of fuel within the group. Mansha added that he was expecting a dividend payout of approximately Rs 2.5 per share by September this year. This would be in addition to the already declared interim dividend of Re 1 per share, for which subscribers in the Offer for Sale will also be entitled.
Introducing the company, Shahid Khan, CEO of Pakgen, said that the company is in the business of operating a fuel fired thermal power plant with net generation capacity of 337 mw sold to Wapda. The plant, which is located in Muzaffargarh, Punjab, started commercial operations in 1998 and has an impressive dividend payout record over a very long period. The company was acquired in 2010 by a consortium and now Nishat Group holds around 50percent and Stanhope Investments of Abu Dhabi holds around 30 percent of Pakgen's shares.
Shahid also apprised the participants on the strategic location of the plant, security arrangements and corporate social responsibility (CSR) initiatives of the company. He also briefed the participants about the damage to the plant during the floods. He said that not only the rehabilitation efforts were completed in a record time, but also the financial loss to the company has been recovered through insurance claims, and to safeguard against such future threat a 20 feet high concrete wall has been constructed around the plant.
He said that the company is constantly on the lookout for opportunities to increase plant efficiencies and has recently made a $1 million investment in a cooling tower project, which is expected to result in huge savings to the company. Khalid Qadeer, Director, Finance, of Pakgen Power, presented an overview of the company's financials, including the latest unaudited accounts and estimates for the full year results. Arif Habib in his remarks acknowledged the participation of the analysts, members and investors. Bilal Moti, CEO of Arif Habib, said that the current offer of 37 million shares at Rs 19 per share is out of existing shareholdings of the company, representing 10 percent of the total capital.