The Cabinet Committee on Privatization (CCOP) on Thursday approved the secondary public offering (SPO) of 2.5 percent of the government shareholding in the Pakistan Petroleum Limited (PPL) and constituted a committee to determine the strike price for the off loading of the shares.
The meeting was chaired by the Finance Minister Dr. Abdul Hafeez Shaikh. The committee agreed in principle to approve the summary moved by the Privatization Commission, for the transaction structure and pricing for the entity’s SPO.
The summary has authorized Finance Minister to ratify the strike price determined through book building process or resolve to meet urgently to decide on the strike price. After much deliberation on the strike price and proposed transaction structure, the chairman decided to constitute a sub-committee under Minister for Water and Power, including Minister for Petroleum Secretary Privatization and Chairman SECP, to fine tune the transaction structure, strike price and other aspects of the proposal and they will submit their recommendations.
In the summary, the Privatization Commission proposed to CCOP for sale of 2.5 percent of the government shareholding of PPL through the transaction structure which envisages 50 percent of the government share to be offered to institutions and high net worth individuals through book building, while 25 percent of shares to be offered to foreign investors through preferential allocation and the remaining 25 percent shares to the public through subscription.
