"Two percent above the floor means $7.3 million additional revenue for government," Zubair explained. He maintained that this was first capital market transaction after 8 years. The Cabinet Committee of Privatisation (CCoP) and PC Board, in their 10 June meeting, considered and approved the minimum price/floor price of Rs 155 per share - a price set after analysing the share price of UBL for the last six months as well as the share's closing price on June 7.
He said the response of international fund management was overwhelming with demand of both International and Domestic Institutional Investors and High Net Worth Individuals (HNWI) around $800 million however the government offered $387 million worth of shares. "The amount of $387 million is higher compared to the last one year's portfolio investment of $300 million", he commented.
Zubair said that 81 percent shares (out of the 19.8 percent of UBL shares on sale) were offered to foreign buyers and 19 percent to domestic buyers at discounted rates. "The UBL book building was held on Wednesday (June 11) starting from 8am and closed at 9pm, keeping in mind the stock markets of Europe and USA," he added.
As many as 241 million shares were offloaded and the government fetched $311 million from foreign buyers, he added. "Nine percent discount (average 7.9 percent) was offered to foreign and domestic buyers of UBL shares which is lower in the other countries in the region," Zubair maintained. Prior to capital transaction of UBL, a study of regional countries revealed that Malaysia and Philippines offered 12 percent discount on such capital market transactions and Indonesia 10. 5 percent but Pakistan offered 9 percent, he added. Zubair lauded the government's economic policies which, he claimed, helped restore confidence of foreign investors.