Government to offload 21.1 million shares of Pakistan Petroleum

LAHORE: Privatization Commission of Pakistan has invited expression of interest (EoI) from lead managers for the public offering of PPL (Pakistan Petroleum Limited), second largest oil and gas explorer of Pakistan. Through this offering, the govt intents to offload approx. 21.1mn shares that is 2.5% of its 70.56% holding.

Based on current price the government could raise Rs4.6bn (US$53mn) at a time when they desperately need funds to finance the record high fiscal deficit. This may help the revival of much awaited privatization process through the stock market.

It is yet not clear whether this offering will be through the book building process or simple offering to small shareholders or both. But regardless of that the market may consider this as a slightly negative development as more share supply may affect the prevailing stock price of PPL.

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