The Privatisation Commission (PC) has convened its board meeting on June 6 to review the preparations for first capital transaction of United Bank Limited (UBL). An official told Business Recorder that the board members would evaluate the floor price of UBL shares, keeping in view the interest received from the roadshows, in the upcoming board meeting. "It is likely that UBL shares will be put to offer in the domestic market on June 9, 2014," the official added.
The official maintained that the board received positive response of divestment of UBL shares during the international roadshows and expects to generate $400 million as determined by the government, adding that maximum benefits would be given to foreign buyers by offering them maximum shares. The official said that a decision was taken in the last board meeting that up to 90 percent of UBL shares would be offered to foreign buyers and 10 percent would be available to domestic buyers. The Cabinet Committee on Privatisation (CCoP) had approved the transaction structure for the divestment of government's remaining 20 percent shares in UBL.
The PC Board constituted a transaction committee to oversee the overall transaction process of UBL. It is looking after the transaction structure and envisages offering the government of Pakistan shares to both international and domestic institutional investors and high net worth individuals (HNWI), through an integrated international book building exercise. He added that the transaction will likely to be completed by end of June 2014 and will be the first equity transaction by the PC in the last 8 years.
Prior to floating the shares internationally, the FA advised the government to arrange roadshows initially in three countries to attract potential investors and fund managers. The three countries chosen were UK, USA and Dubai. PC Board Chairman Zubair Ahmed and the Financial Advisor participated in the roadshows, a board member said. The member further said that one-day long roadshow in each country helped the financial advisor to evaluate the response of the international market, adding the response was positive.