OGDC GDS over-allotment option used

Posted on 12.12.06 by StockPK Team @ 1:41 pm    

The Privatisation Commission (PC) on Monday announced that Citigroup, Goldman Sachs International and BMA Capital had exercised the over-allotment option and sold additional 53.294 million ordinary OGDCL shares in the form of Global Depository Shares (GDSs). This transaction completed the final element of institutional offering, said a PC statement.

Including the over-allotment option and retail offering, gross proceeds of the offer are expected to amount to Rs49,353 million ($811 million). The retail offer of 21.505 million shares to investors in Pakistan at a price of Rs110 per share will commence this month and is expected to complete within a few weeks thereafter.

The retail offer price represents an effective discount of almost 3 per cent to the institutional offer price after adjusting for the Company’s first quarter dividend payment at Rs1.75 per share that is not available to participants in the retail offering, the statement added.

Commenting on the successful exercise of over-allotment option, Zahid Hamid, Minister for Privatisation and Investment, said: “The exercising of the over-allotment option in full completed this landmark institutional offering of OGDCL shares. The additional shares sold have raised a further $100 million that will, in accordance with the law, be used to pay the national debt and for poverty alleviation. Once the retail offer has been completed, the total proceeds of the transaction will amount to $811 million, making this the biggest transaction by any Pakistani company in the last decade. This offering has been very encouraging and is a strong signal of confidence by foreign investors in today’s Pakistan.”

BMA Capital, Citigroup and Goldman Sachs International are Joint Lead Managers with Citigroup and Goldman Sachs International acting as Joint Global Co-ordinators and Book-runners for the international offering and BMA Capital as Lead Manager and Book-runner for the domestic offering and joint lead manager of the international offering.

Source: The News