DR NEWS
Oil and Gas Development Company, or OGDC, raised $813 million in the biggest international share offering in more than a decade by a Pakistan-based company. OGDC, Pakistans largest petroleum exploration and production company, listed its global depositary shares on the London Stock Exchange on December 6. Each GDS represents 10 ordinary shares. OGDC is the largest company on the Karachi Stock Exchange. Based on the offering price, OGDC has a market capitalization of about $8 billion.
BMA Capital, Citigroup and Goldman Sachs were joint lead managers. The issue was the largest equity offering of a Pakistani company abroad since the $900 million sale of a 10% stake in Pakistan Telecommunication in September 1994.
The secondary offering of OGDC shares heralds a new era in Pakistans capital markets and has, in itself, substantially increased the level of international investment in Pakistani equities, Arshad Nasar, OGDCs chairman and CEO, said in a statement. The proceeds will help the government cope with a growing current account deficit.
The company has the largest portfolio of recoverable hydrocarbon reserves in Pakistan and accounts for about half of the countrys oil production. With 46 exploration licenses, it also has the largest oil and gas exploration acreage in Pakistan, covering 39% of the total as of June 2006. The share offer represents 10% of OGDCs outstanding share capital. It included a retail offering in Pakistan managed by BMA Capital.
Gordon Platt