In case of over subscription, the government would exercise the Green Shoe option and will offer an additional 10 percent ordinary shares of the company to the general public, said KSE managing director Moin M Fudda.
The Karachi Stock Exchange with the close of calendar year 2004 has surpassed all the previous records of market capitalisation and the highest level of the KSE-100 Index ever achieved. The KSE 100 Index on Friday stood at 6218.40 points having market capitalisation of Rs 1,723.454 billion (nearly $29 billion).
The shares of Kapco were being offered to the general public through stock exchanges as part of the government's privatisation policy. The listing of companies under this policy had made substantial contribution in the market capitalisation of the Exchange.
The listing of Kapco will further contribute in raising the existing market capitalisation of the Exchange and would add new dimension to the market diversity. As a result of 20 percent of the GoP public offering in the capital of the company including green shoe option amounting to Rs 1.760 billion, around 316,800 small applicants would be able to mobilise their savings while applying for 500 shares of the company, said Fudda.
Keeping in view the hardship faced by the applicants in the recent public offerings, in the matter of credit of shares through book entry, Moin Fudda advised the applicants to open their own investor's account under Investors Account Services (IAS) of CDC.
The Exchange highly appreciates the government's decision to use the capital market platform in pursuance of its privatisation policy, which was significantly contributing towards improving the depth of the capital markets of the country, KSE MD added.