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Initial Public Offering:

The first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.

Habib Bank Limited:

HBL is a banking company, which is engaged in commercial and retail banking and related services domestically and overseas. HBL was established on 25th august 1941 and performed its services in private sector until its nationalization in 1974. It has a substantial share of 20% of the total commercial banking market in Pakistan. Government has appointed privatization commission (PC) as an advisor for privatization of HBL.

The IPO done by HBL is the largest offering ever in Pakistan in terms of both value and number of successful applicants. Road show Presentations for the Offer for the Sale of Shares of Habib Bank Limited (HBL) were held in Karachi on July 23, 2007 and in Lahore on July 24, 2007. The Offer for Sale was conducted by the Privatization Commission; Government of Pakistan out of State Bank of Pakistans shareholding in HBL.IPO is going to held from 26th July 2007 to 31st july 2007. Global Securities Pakistan Limited has been appointed as the Lead Manager for the Transaction. 34,500,000 shares (5% of the Paid-up Capital) of HBL are being offered at a price of Rs.235/(inclusive of a premium of Rs. 225/- per share) and in case of oversubscription the Privatization Commission may exercise the Green shoe option and offer an additional 17,250,000 shares (2.5% of Paid-up Capital). The offer for sale of shares of Habib Bank Limited at the Karachi Stock Exchange has been 1.7 times oversubscribed, as it attracted over 428,000 applications worth Rs 18.638 billion, much higher than the government's target of Rs 12.14 billion, provisional figures showed on Tuesday. Deposit growth for the year has been 12.5% and the net asset growth of the bank has been 19% over 2007. HBLs consolidated Pre-tax profit for 2008 is
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Rs. 22.03 billion and the profit after tax is Rs. 15.61 billion, which translates into earnings per share of Rs. 20.47.

Main points in HBL IPO:

Road Shows: In Karachi on July 23, 2007 and in Lahore on July 24, 2007. Lead Underwriter: Global Securities Pakistan Limited Date of IPO : 26th July 2007 to 31st July 2007 Total Shares Issued: 34.5 million Shares of HBL. Offered Price Of One Share: Rs.235/share Funds Collected Trough IPO: Rs. 12.2 Billion Over Subscription: 1.7 times oversubscribed and total funding increased to 18.638 billion Earnings per share: Rs. 20.47

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