Islamic Republic of Pakistan Announces Successful Completion
of Institutional Offering of OGDCL Shares and GDSs

Final Institutional Price PKR 115
per Share, US$18.90 per GDS

Total Offer Size
PKR 49,461 million (US$813 million)

Islamabad, December 01, 2006

The Privatisation Commission of the Islamic Republic of Pakistan today announced the successful completion of the management roadshow and bookbuilding process for the domestic and international institutional offering of ordinary shares (“Shares”) and Global Depositary Shares (“GDSs”) (the “Offer”) of Oil and Gas Development Company Limited (“OGDCL”). The final institutional offer details are as follows:

1 The Offer was priced at PKR 115 per Share and US$18.90 per GDS, with each GDS representing 10 shares

2 The offering price represents an approximately 9.5% discount to today’s closing price, which compares favourably with debut GDR offerings for other Asian companies

3 The total number of OGDCL Shares sold by the Privatisation Commission is 376,799,000, excluding the over-allotment option

4 The underwriters have been granted an over-allotment option for up 53,294,000 additional Shares, in the form of Shares and GDSs, exercisable for a period of 30 days from the announcement of the offer price

5 The gross proceeds of the institutional Offer are expected to amount to PKR 43,332 million (US$ 712 million), excluding the over-allotment option. Including the over-allotment option and the retail offering, gross proceeds of the Offer are expected to amount to PKR 49,461 million (US$813mn)

6 The Offer represents 10% of OGDCL’s outstanding share capital and as a result of the offering the free float of OGDCL will triple to approximately 15%

7 At the offering size, the transaction was approximately two-times oversubscribed

8 Demand was generated from a broad range of institutional investors from the United States, the United Kingdom, Asia and the Middle East, as well as the domestic Pakistan institutional market

9 During the course of a two week international roadshow, OGDCL’s management met with over 80 of the world’s leading institutions, many of whom participated in the transaction

10 Approximately 95% of the Institutional Offer was allocated to international institutional investors and 5% to institutional investors based in Pakistan

11 This Offer is the first time that institutional investors in Pakistan have participated in an international bookbuilding for a publicly-traded, Pakistan-listed company


12 Conditional trading of the GDSs on the London Stock Exchange will also commence on 1 December 2006; unconditional trading will commence on 6 December 2006

13  A retail offer of 21,505,000 Shares to investors in Pakistan at a price of PKR 110 per Share will commence in mid-December and is expected to be completed within a few weeks thereafter; the retail offer price represents an effective discount of almost 3% to the Institutional Offer price after adjusting for the Company’s announced first quarter dividend payment of PKR 1.75 per Share that is not available to participants in the retail offering

14 BMA Capital, Citigroup and Goldman Sachs International are Joint Lead Managers with Citigroup and Goldman Sachs International acting as Joint Global Co-ordinators and Bookrunners for the international offering and BMA Capital as Lead Manager and Bookrunner for the domestic offering and joint lead manager of the international offering

Commenting on the success of the Secondary Offering, Zahid Hamid, Minister for Privatisation and Investment, said:

“The success of this offering sends a strong signal of global institutional investor confidence in Pakistan and bodes well for Pakistan’s growing participation in the international capital markets. The Government is committed to maintaining the pace of its privatisation programme.”

“We are very pleased that the international market has shown its support for OGDCL at a price and a valuation that compares favourably with its international peers.”


Mr Arshad Nasar, Chairman and Chief Executive Officer of OGDCL, said:

“The level of demand from investors for OGDCL shares shows a strong appreciation of our business and prospects. This is a great endorsement of the work of our employees, who continue to work tirelessly to sustain OGDCL’s position as Pakistan’s leading E&P company to benefit all our shareholders.”

“We are delighted to welcome a broad range of the world’s leading institutions as shareholders in our company and are pleased that the offering has enhanced our profile in the international markets.”

Link: http://www.privatisation.gov.pk/Handout/HO-AR-06/Dec-06/Handout%20Dec-%202006.htm