STOCK WATCH

 

 

By SHABBIR H. KAZMI
Updated Jan 01, 2004

 

The Karachi Stock Exchange has also cleared the Offer for Sale Document of Kot Addu Power Company (KAPCO). The total issued, subscribed and paid-up capital of company is over Rs 8,802 million, out of which 88.025 million ordinary shares of ten rupees each, comprising of 10% of the company's total paid-up capital is being offered to the general public by the Privatization Commission at an Offer price of thirty rupees per share. In case of over subscription the GoP will exercise the Green Shoe option and will offer an additional 10% ordinary shares of the

 

 

company to the general public. The shares of KAPCO are being offered to the general public through stock exchanges as part of Government's Privatization Policy. The listing of KAPCO will further contribute in raising the existing market capitalization of the Exchange and would add new dimension to the market diversity. As a result of 20% of the GoP public offering, including green shoe option, amounting to Rs 1.760 billion, around 316,800 small applicants would be able to mobilize their savings while applying for 500 shares of the company.

Atlas Asset Management has informed the KSE regarding the amount received towards subscription of Atlas Fund of Funds IPO. According to the details, the issue was over-subscribed by 25% as applications worth Rs 250.46 million were received against the offer size of Rs 200 million. Out of the total applications, 716 applications worth Rs 3.58 million were received for 500 shares each.

Attock Petroleum is one of the five oil marketing companies operating in Pakistan. It intends to will offer 10 million shares (out of 40 million outstanding) at Rs 57.75/share through an offer for sale next month. The offer for sale involves part divestment of existing holding by the Attock Oil Group of Companies. The company commenced operations in 1998 and is part of the Attock Oil/Pharaon Group, with interests in oil refining (Attock Refinery), oil and gas exploration (Pakistan Oilfields) and Cement (Attock Cement Pakistan). The company currently holds an estimated market share of 3%. It has 84 marketing and retail outlets located mainly in Punjab and NWFP. The company witnessed robust operating profit growth of 66% and posted after-tax earnings of Rs 336 million (EPS: Rs 8.4), supplemented by increased contribution from non-core activities (storage, handling and transportation). APL has aggressive expansion and diversification plans going forward. These include 1) retail network expansion with increased focus on high margin products such as lubes, 2) setting up of a new storage facility at Port Qasim to cater to petroleum product trade and 3) participation as consortium member in setting up of a 150MW power project.

OGDC

 

 

The Oil and Gas Regulatory Authority (OGRA) awarded a license to Oil and Gas Development Company (OGDC) for transmission of gas from its fields to the power plants. OGDC is now licensed to sell gas from its Uch field to Uch Power Company and to Fauji Kabirwala Power Company from the Nandpur/Panjpir gas field and to Altern Energy from its Bhal Sayedan gas field. While OGDC has been selling gas from its fields to these companies for the last few years, the licensing completes the formalities required for undertaking direct supply of gas to the power companies. OGDC and Mari Gas Company (MGC) have been granted four exploration licenses recently. Three of the licenses have been awarded to OGDC while one has been awarded to MGC. After successful discoveries of oil and gas reserves in Balochistan and NWFP, oil and gas companies are now intensifying their efforts to undertake oil and gas exploration activities in these two provinces.

ENGRO CHEMICAL PAKISTAN

Dawood Hercules Chemical (DHC) finally announced its intention to increase its shareholding in Engro Chemical from 19% to 34%, consequently increase the group's holding to 42% from present 27%. The DHC has made a tender offer to acquire 22.5 million shares, representing 14.71% of total issued shares of Engro at an offer price of Rs 123 per share. In case, the acceptances against the offer exceed 22.5mn shares it would have an option to acquire the additional shares or prorate its acceptance and acquire only 22.5 million shares out of the total acceptances. Analysts rule out the possibility that the group would be off loading its stake in the company. They are of the opinion that the group would be accumulating more shares of Engro through the group companies in future as well to raise its shareholding to 51% percent in order to have a greater management control over the business affairs of Engro.

SUI SOUTHERN GS COMPANY

Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline (SNGPL) have signed an agreement for the transportation of gas from Hasan gas field to SNGPLs' compression station at Sui (Balochistan). The gas transportation cost of Rs 50 million per annum would be paid by SNGPL to SSGC over a period of 15 years.