The Cabinet Committee on Privatisation (CCoP) on Monday approved the floor price of Rs166 per share for divestment of GoP residual shares in Habib Bank Limited (HBL) with base size of 250 million shares.

The CCoP, in its meeting chaired by Finance Minister Ishaq Dar after detailed deliberations approved the floor price of Rs.166 per share for divestment of GoP residual shares in HBL.

According to the approved Offer for Sale Document (OFSD), the offer of HBL share is being made only through the book building method to the eligible international and domestic institutional investors and high-net worth individual investors (HNWI).

The government has split its remaining 609.3 million shares into two categories. As many as 250 million shares will be sold as base shares through the book-building process. The remaining 359.3 million shares will be available under a Green Shoe Option to be exercised on the basis of investor demand and potentially for offering to multilateral banks, mainly the International Financial Corporation (IFC) of the World Bank.

The government is going to divest its shares of third bank in last ten months, as it already completed the transactions of Allied Bank of Pakistan (ABL) in December last year that generated Rs 14.4 billion and United Bank Limited (UBL) in June 2014 that fetched $387 million for the national kitty. The government is expecting to generate $1.36 billion from divesting the shares of HBL in April 2015. Apart from the banks, the govt also privatised the Heavy Electrical Complex (HEC) during the last week of March for Rs.905 million. The other transaction that would be completed this fiscal year is National Power Construction Corporation that would generate Rs2 billion.

Meanwhile, the book building of HBL, the CCoP was informed, would start at 0900 hrs (PST) on Tuesday April 07, 2015 and conclude at 1700 hrs (PST) on Friday April 10, 2015.

The Chairman Privatisation Commission, Mohammad Zubair informed the Finance Minister that in its meeting Monday morning the PC Board considered the HBL pricing benchmarks, demand of investors at various price levels and other influencing factors as presented by the Financial Advisors and made its recommendations for the price at which GoP shares in HBL were to be offered.

The PC Board and CCoP will meet on Saturday April 11, 2015 to approve the strike price based on the final results of the book building process.

Information Minister Pervaiz Rashid, Federal Minister for Planning and Development, Ahsan Iqbal, Federal Minister for Petroleum & Natural Resources, Shahid Khaqan Abbasy, Commerce Minister, Khurram Dastgir, Minister for Port & Shipping, Kamran Michael, Chairman PC, Mohammad Zubair, Chairman Board of Investment, Miftah Ismail, Secretary Finance, Dr. Waqar Masood, Advisor Finance Division, Rana Assad Amin, Chairman SECP Zafar ul Haq Hijazi and other senior officials from various ministries attended the meeting.