Govt to float GDR of three banks

The government is considering floating Global Depository Receipts (GDRs) of shares of three banks – Habib Bank, United Bank and National Bank – and a power generation company in the international market.

These will be followed by an international GDR offer of 10-15 per cent shares in state-owned Oil and Gas Development Company (OGDC) on the London Stock Exchange.

Federal Minister for Privatisation and Investment Zahid Hamid was speaking in an interview with a UK-based daily Financial Times, a press statement said.

Zahid Hamid said: “This (OGDC offer) will give us access to international capital markets. It will not only enhance the country’s profile but also help in the OGDC’s transformation”.

He pointed out the response of prospective investors during roadshows outside Pakistan had been positive.

The OGDC, with a market capitalisation of approximately $10.2 billion, announced this week it had discovered oil and gas reserves in the northwest, which would raise Pakistan’s daily oil production capacity to 69,000 barrels from 65,000. The OGDC has also discovered gas reserves with a capacity of about 12 million cubit feet per day (mcfd).

The newspaper observed the plan highlighted Islamabad’s increasing interest in reaching out to international capital markets, almost 12 years after Pakistan Telecommunication Co’s shares were offered globally in this way. The move followed an economic recovery of more than two years that encouraged government leaders to give the go-ahead to Pakistan’s return to international capital markets, senior government officials said. The government had not revealed the exact value of OGDC shares that would be offered, though officials said they expected the listing to take place in the next two to three months, the Financial Times reported.

Source: The News