The State Bank of Pakistan (SBP) Governor and heads of all banks have been approached for issuing instructions to all branches to facilitate the general public in subscribing to the Kapco shares during February 21 to 24, 2005.
The minister stated that a hotline was being set up for the people and in case they face any problem during subscription, they should immediately call the helpline for immediate rectification of their problem.
Dr Hafeez Shaikh further stated that in case any bank official was found non-responsive and non-co-operative, strict action would be taken against the individual.
The chief ministers of Punjab, Sindh, NWFP and Balochistan had also been requested to inform the people of their respective provinces, enabling them to avail the opportunity to get direct benefits of the privatisation under the slogan, 'Privatisation for the People', he added.
Dr Hafeez Shaikh added road shows had been organised in Karachi, Lahore, Multan, Peshawar, Quetta and Sukkur for informing the general public of investment opportunity and application procedure.
The public was also being informed of investment opportunity through the press and electronic media campaigns, he stated.
The offer price per share has been fixed at Rs30 per share and applications can be submitted for 500 shares only, requiring an investment of Rs15,000 per application.
Up to 176,050,000 (20 percent) shares of Kapco (including green shoe option) will be offered to the general public resulting in potential proceeds of up to Rs 5.28 billion.
Subscription will remain open for four consecutive days, i. e., from Monday, February 21, 2005 to Thursday February 24, 2005 during banking hours.
People have been advised to submit only one application per national identity card as the people submitting more than one application will be rejected and the money may be confiscated under rules.
Kapco is a highly profitable company with a good operational record. If the ever-increasing response to the recent IPOs by the Privatisation Commission is any indication, then a massive record-breaking response to the Kapco IPO may be expected.
More than 316,000 applicants are expected to benefit from the balloting of Kapco shares.
The listing of Kapco would increase market capitalisation significantly and would bring a worthwhile addition, rather a leader, to the power sector companies listed on the stock exchanges.
The large quantity of shares offered would also add to the liquid share float in the market. Global Securities Pakistan Limited are the lead managers for the transaction.
The minister stated the Kapco offer was open for both resident as well as overseas Pakistanis.
The public would receive Kapco shares in April 2005 and the secondary public offering of Oil and Gas Development Corporation Limited (OGDCL) shares and the IPO of State Life Insurance Company (Slic) shares would follow the Kapco IPO by June 2005, he informed.
Dr Hafeez Shaikh said Pakistan's privatisation program was being acknowledged as the most transparent among the investors around the globe.
In response to the offer for privatisation of National Refinery Limited (NRL), a record number of 29 Expressions of Interest were received while for the strategic sale of Pakistan Telecommunication Company Limited (PTCL) as an integrated entity, 14 parties submitted EoIs out of which 13 parties have submitted requests for supply of quotations (RSOQs), he said.
Replying to a question regarding the privatisation of Karachi Electric Supply Company (KESC), the minister said the tariff formula for KESC was unchangeable for a period of seven years and the new buyer was not authorised to make any change in it.
During the privatisation of 20 state-owned entities by the present government, not even a single worker was retrenched, instead closed units were revived by the private sector through privatisation process, which has generated employment opportunities and also revived economic activity in the respective areas of the country, he added.
After successful privatisation of the KESC, an increase of 20 percent in the salaries of the contract workers, disbursement of 10 percent shares of the company to workers and restoration of trade union activities in KESC would benefit workers, he said.