Pakistan is set to witness its biggest initial public offering (IPO) since 1996 when the government will make available to the public this month, 2.5 per cent of its shares in Oil & Gas Development Company Ltd (OGDCL).

The shares will be offered at a premium of Rs22 per share, which will take the offer price to Rs32. According to sources, the government may go for a green-shoe option of up to another 2.5 per cent, which could take the total offer to 5 per cent of the total capital of Rs10.7 billion.

While it has been decided that the applications for up to 1,000 shares will receive the full allotment, those above 1,000 will receive the allotment on a pro-rata basis.

Moin M. Fudda, managing director of the Karachi Stock Exchange (KSE) told Gulf News from Karachi over telephone, that the listing of OGDCL, will see KSE cross the Rs1 trillion mark in total market capitalisation.

OGDCL's contribution to the market capitalisation of KSE will amount to Rs43 billion once the listing is over.

In 1996, the government divested 26 per cent of its shares in Pakistan Telecommunications Co (PTCL), marking the first major IPO in the recent history of KSE. Pakistan, which has been going strong on its privatisation process, is preparing to offer over 3 per cent of its stake in National Bank of Pakistan (NBP). This will be the third tranche of divestment in NBP.