Habib Bank IPO, GDR approved

Habib Bank president Zakir Mahmood said on Monday the government of Pakistan has given green light for the issuance of IPO and GDR of the bank, authorizing the Privatization Commission to set a deadline and work out details.

Addressing a press conference on the launch of new corporate identity of the bank, he said the bank had already applied to different regulatory authorities of foreign countries to allow it to start business.

He said HBL has plans to extend its presence in key international markets, which include the United Kingdom, UAE, South and Central Asia, Africa and the Far East.

OGDCL – POST-GDR AND 2ND IPO

OGDCL was listed on GDR on December 18, 2006 at a price of US$ 1.89/share, which accounts approximately to Rs. 113.40 (the exchange rate being Rs. 60/US$ 1). Moreover, GoP also launched 20 million shares from its holdings in the company in what is a secondary public offering and what is termed a second IPO in mid-January of this year at a price of Rs. 110/share.

Foreigners hold 20pc of free-float on KSE

Foreign investment in the country’s capital market is generally dismissed as of little consequence and an ex-chairman of the Karachi Stock Exchange commented a little while ago that the market would be better off without it.

Such disillusionment stems from the mood swings of a foreign portfolio manager: “The outflow of funds is as quick as its inflow,” says a market guru. But the influence of the off-shore equity investment in the local bourses is growing.Admitting that the foreign funds hold just about 4 per cent of total market capitalization and the share of overseas funds in average daily volume is just about 3.5 per cent, analysts at the JS Capital Market have calculated that approximately 17 per cent of the share represents foreign investment in the float adjusted capitalization.

Commentary on December 2006 Stock Crash

In the past two years we have seen some tremendous highs and lows in the stock market. Yet again we witness a major decline in the index. It all started in mid-December 2006, the causes being:

• Oil and Gas Development Corporation (OGDC) listing and undervalued sale of Global Deposit Receipts (GDRs);
• Selling in the banking sector due to acquisitions, and;
• Primarily, suspension of Callmate (CTTL) shares’ trading and the six times its pad up capital stuck in the continuous finance (CFS) and Badla market.

Lower-than-expected OGDCL offer price

Cabinet Committee on Privatisation (CCoP) announcement of below the market expectation price for Global Depository Shares (GDSs) and secondary offering of Oil and Gas Development Company (OGDCL) paved way for bearish spell at the Karachi stock market on Friday.

KSE 100-share Index lost three technical barriers of 10,600, 10,500 and 10,400 and fell 230.56 points to close at 10,388.19 points.

The junior 30-Index also registered the same level of decline of 230.99 points to 13,131.32 points.

OGDCL alone contributed 109 points to the total decline of the day in indices. The scrip opened on its lower lock and remained at that level to close at Rs120.85, shedding Rs6.35 with 2.613 million shares traded, Live Securities reported.

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.

Index suffers sudden fall after KSE notification

Closing bell restored indices in red at the Karachi stock market following a KSE notification requesting its members to furnish information regarding in-house badla and ensure placing of shares in CDC blocked account with immediate effect on Friday.

The said notification attracted fresh waves of negative sentiments to the stock exchange that resulted in plummeting KSE 100-share index by 144.17 points to 10,705.87. While junior 30-index plunged 109.07 points to 13,219.99.

Brokers passed on their head itch to the investors, who came in panic in closing hours of the twin trading weekend sessions and sold off their intra-day purchasing and early holdings at buyers’ offer.

15pc OGDC shares to be sold by December

Pakistan will complete the sale of 15 per cent shares in Oil and Gas Development Company Limited (OGDCL) through Global Depository Shares (GDSs) and secondary public offering till December this year.

The Privatisation Commission (PC) on Monday announced that Global Depository and Ordinary shares are likely to be offered by next week. The offer will represent up to 15 per cent of the share capital of OGDCL, comprising up to 645,139,000 shares.

PC reviews OGDCL GDR

A team of joint lead managers led by Goldman Sachs and Citigroup made a detailed presentation before Privatisation Commission (PC) Board on the up to date position for the divestment of 10 to 15 per cent shares in Oil & Gas Development Company Limited (OGDCL) through Global Depository Receipts (GDRs) and a secondary domestic offering.

It was said in a press statement issued after Zahid Hamid, Federal Minister for Privatisation & Investment chaired a meeting of PC Board on Thursday.

Banks major attraction for foreign portfolio investors

The growing foreign interest in Pakistan’s developing economy, particularly in areas like banking and capital market, is well reflected in the Karachi Stock Exchange, which has been rising for the last couple of weeks.

This is primarily evident from the increased inflow of foreign portfolio investment into Special Convertible Rupee Account (SCRA) managed by the State Bank of Pakistan.

SBP figures pointed out that during the week ended on October 12, 2006, a massive inflow of US$13.5 million was recorded in the country’s stock markets.