06/07/2007 The Exchange is delighted to welcome United Bank Limited to the Professional Securities Market (PSM).
6 July 2007
The London Stock Exchange is delighted to welcome United Bank Limited to the Professional Securities Market (PSM).
United Bank (UBL) is the second Pakistani Bank to join the PSM and is one of the largest consumer, commercial, corporate and investment bank in Pakistan with international operations across the Middle East and presence in the UK, US and Europe as well. It has more than 1,000 branches across the country and 15 branches overseas. The Bank’s principal business is to provide personal banking, cash management, retail loans and other financial services to corporate and private customers.
The GDR issue on the London Stock Exchange consisted of 25% of the company’s share capital with the total offer comprising of 44mm GDRs. The shares were offered for sale by the State Bank of Pakistan. The deal was priced at US$12.8543 per GDR raising a total of US$565.4mm for the selling shareholder. UBL is also listed in the local stock exchanges in Pakistan and has a market capitalization of ~ US$3bn.
The share sale by the State Bank of Pakistan was part of privatization program being undertaken by the Government of Pakistan. The proceeds of the offering will be used to repay government debts and fund poverty alleviation projects.
Commenting on the offering, Pakistan’s Honorable Minister of Privatization, Minister Zahid Hamid said:
"Total demand was $2.5 billion from global and Asian funds. This was the largest-ever book for a Pakistani equity offering. It was a very successful offering.''
Merrill Lynch was the Lead Manager, Sole Bookrunner and Global Coordinator for the offering. Merrill Lynch is also acting as the Stabilizing Manager. KASB was the Financial Advisor.