Karachi, May 31, 2012 (PPI-OT): Minister for Water and Power, Syed Naveed Qamar has approved the transaction structure and floor price of PkRs 190 per share for the Secondary Public Offering (SPO) of Pakistan Petroleum Limited (PPL).
According to Alfalah Securities Limited, the Committee has decided to that 50% of the offer (23.2 mn shares) would be offered to domestic and international investors simultaneously via the book-building method and 50% of the offer (23.2 mn shares) would be offered to Pakistani general public at the decided through the book-building process. Out of which 25% (11.6 mn shares) would be confirmed offer and 25% (11.6 mn shares) would be the Green Shoe option. Moreover, the floor price for book building would be 30 day average price or PkRs l90 whichever is higher although the price of PkRs 244 was recommended by the Bank of America/ Merrill Lynch research. Alfalah Securities Limited recommends investors to go for a long position in this stock preferably through the SPO as it offers an upside potential of 27% at the target price of PkRs 246.