Investors showed overwhelming interest in ABL's divestment: M. Zubair

ISLAMABAD: The Cabinet Committee on Privatization (CCOP) on Friday  unanimously approved strike price of Rs. 110/- per share for divestment of government’s residual shares in Allied Bank Ltd. (ABL), ARY News reported.

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According to the press release issued by Finance Ministry, during the meeting of privatization board, held on December 11, under the chair of Finance Minister, Ishaq Dar, recommended the ‘Strike Price of Rs.110/- and allocation of GOP Shares to the successful bidders as specified in the Offer for Sale Document (OFSD).

The press release added that a total of 131 million shares were offered for divestment in the stock market. Against this, orders for 185 million shares have been placed, reflecting overwhelming interest of the investors.

Chairman Privatization Commission Mohammad Zubair informed the meeting that there has been a fine mix of local and foreign exchange component in the orders placed for shares. Against the strike price of Rs.110/- the orders placed are worth Rs. 14.4 billion inclusive of $ 20 million foreign exchange component.

There has been encouraging response from home and abroad and the transaction has been completed in a record 19 working days, Zubair added.

He further said that strike price of Rs.110/- per share translates into a discount of only Rs.2.76 per share to the closing price of Rs.112.76 on December 11, 2014, i.e. a minimal discount of 2.76 per cent to the closing price on December 11, 2014.

This is one of the lowest discounts offered for similar transactions anywhere in Asia over the last several years, Zubair remarked.

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Investors showed overwhelming interest in ABL's divestment: M. Zubair

by Zohaib Kazmi