Minister for Privatisation, Dr Abdul Hafeez Shaikh talked about the new IPO strategy at an Oil and Gas Development Company Limited ceremony held here in connection with induction of its IPO in Karachi Stock Exchange-100 index.
The minister said the new strategy would benefit more number of people due to small size of shares' lot.
He termed the OGDCL IPO as a big success and claimed that it has widened and broadened the capital market. The minister added that dispose of public entities shares through IPOs was meant to pass on the benefit of privatisation to common man.
Hafeez Shaikh said in the past the poor people of the country had always suffered but now strategy has been changed to ensure that privatisation becomes equally beneficial for low income group.
The minister said massive subscription in the case of SSGC and OGDCL IPOs was indicative of people's trust in the government policies. He said the government policies were working to its expectations.
Hafeez Shaikh gave credit of successful economic policies to President Musharraf and Prime Minister Jamali and added that Privatisation Commission has realised Rs 42 billion from public sector entities' sell off during the last one year.
He maintained that liquidity was available in the market for its growth, which would expedite the process of economic development in the days to come.
The minister informed that divestment of PIAC, PPL and Kapco would be made in May-June.
He further stated that 10 percent PIAC shares would be offered to general public in line with standard policy to give preference to smaller applicants for IPOs.
The minister said the government committed to give preference to smaller applicants for 500 shares to further broaden, deepen and strengthen the stock markets.
Hafeez Shaikh appreciated OGDCL Managing Director, Najam Kemal Hyder's role in providing all available resources to Privatisation Commission to make his company's IPO a success within stipulated time. He, in particular, mentioned the MD's co-operation during IPO road show in major cities.
The minister also appreciated the Ministry of Finance, CCOP, SECP, OGDCL and lead managers, KASB Securities for jointly making OGDCL IPO a big success.
OGDCL Chairman Afzal Khan, MD KSE Moin Fudda, Nasir Ali Shah Bukhari of KASB Group spoke also at the occasion.