OGDCL book-building completed

The Privatisation Commission (PC) on Friday announced the successful completion of the management road show and book building process for the domestic and international institutional offering of ordinary shares and Global Depositary Shares (GDS) of Oil and Gas Development Company Limited (OGDCL).

Addressing a press conference here, Minister for Privatisation and Investment said the success of this offering sends a strong signal of global institutional investor confidence on Pakistan and bodes well for Pakistan’s growing participation in the international capital markers.

The offer was priced at Rs115 per share and $18.90 per GDS with each GDS representing 10 shares.

The offering price represents an approximately 9.5 per cent discount on today’s closing price which compares favourably with debut GDR offerings for other Asian Companies and the total number of OGDCL shares sold by the Privatisation Commission is 376,799,000 excluding the over-allotment option.

The minister said, “We are very pleased that the international market has shown its support for OGDCL at a price and a valuation that compares favourably with its international peers”.

Chairman and Chief Executive Officer of OGDCL Arshad Nasar said the level of demand from investors for OGDCL shares shows strong appreciation of our business and prospects.

He said this is a great endorsement of the work our employees who continue to work tirelessly to sustain ODGCL’s position as Pakistan’s leading E&P company to benefit all our shareholders.

It is to mention that according to final institutional offer detail the underwriters have been granted an over-allotment option for up 53,294,000 additional shares, in the form of shares of GDSs, exercisable for a period of 30 days from the announcement of the offer price.

The gross proceeds of the institutional offer are expected to amount to Rs43,332 million ($712 million) excluding the over-allotment option. Including overall option and the retail offering, gross proceeds of the offer are expected to amount Rs49,461 million (US $ 813 million).

Source: The News