The Cabinet Committee on Privatisation (CCoP) has constituted a sub-committee to fine-tune the transaction structure and strike price for Secondary Public Offering (SPO) of Pakistan Petroleum Limited.
The committee which met with Federal Minister for Finance and Economic Affairs, Dr Abdul Hafeez Shaikh in chair constituted the sub-committee under Federal Minister for Water and Power, Syed Naveed Qamar with Federal Minister for Petroleum and Natural Resources, Dr Asim Hussain, Secretary Privatisation and Chairman SECP.
The committee was directed to submit its report and recommendations to the chairman in the shortest possible time. The committee agreed in principle to approve the summary moved by the Privatisation Commission, Ministry of Privatisation for the transaction structure and pricing for PPL SPO. The summary has authorized the Finance Minister to ratify the strike price determined through book building process or meet urgently to decide the strike price.
In the summary, the PC proposed to the CCoP the sale of 2.5 percent of the government shareholding of the PPL through the transaction structure which envisages 50 percent of the 2.5 percent government share to be offered to institutions - local, foreign and high net worth individuals through book building, 25 percent of the 2.5 percent government shares to be offered to foreign investors through preferential allocation and 25 percent of the 2.5 percent of GoP owned shares to be offered to general public through a subscription.
Earlier, the Privatisation Commission had held its Board meeting and approved the SPO of PPL. While discussing the capital market transaction roadmap, the PC Board decided that as domestic capital market recovered to help the local market, capital market related transactions should be expedited. A six-member Transaction Committee, which finalised the SPO of PPL is headed by a senior PC board member Iftikhar ul Haq with Mahmood Nawaz Shah, Farid Malik PC Board members, the Federal Secretaries Petroleum and Natural Resources, Privatisation, Finance, Chairman SECP and MD PPL as its members.
According to PPL, the quantum of shares released through SPO will be 23 million. The management of PPL stated that it was decided that a portion of SPO would be offered through book building process to allow maximum transparency and protection of investors'' interest. The confirmed timelines for book building will be conveyed to the stock exchanges on receipt of the same from the Privatisation Commission of Pakistan, PPL stated.