***After UBL , another success story by Zubair Umar … :k:
Govt offloads 5% stakes in Pakistan Petroleum Limited – The Express Tribune
Re: Another Victory : PPL Privatization
Panchi pai, aor threads main be kuch likha karain agar badshah salamat ki darabar se kuch fursat ho to.
Re: Another Victory : PPL Privatization
Yes.. Sachy sahi kah raha hia... do teen lines hi likho par likho to sahi....
Re: Another Victory : PPL Privatization
Yes.. Sachy sahi kah raha hia... do teen lines hi likho par likho to sahi....
Desert Bird specializes in copy-paste jobs. He doesnt seem to care much for logic.
And about the original post, both UBL, and now PPL have been sold below market prices. With plenty of liquidity in the markets, its a major surprise (or maybe not) that PMLN has chosen to sell out these prized possessions for cheaper than what they are worth in the markets.
Why have they been sold for less? PMLN's argument would probably be that block sales are always done at discounted prices, because of their sheer volume. But thats quite hypocritical, as on the other hand, the same PMLN is shouting out at the top of its lungs as to how the market capitalization has doubled in the recent past.
So the question remains. Why have PPL and UBL been sold at under-market prices? Were there any familiar faces in the buyer's block, and was this an attempt to facilitate those friendly faces?
Re: Another Victory : PPL Privatization
…Terming it an unprecedented and unbelievable privatization development, the State Minister informed that strike price of the PPL shares was Rs 219 per share against the floor price of 205 per share…
This is from today:
Restored attachments:
Re: Another Victory : PPL Privatization
What was the price day-before this 'strike price'?
Re: Another Victory : PPL Privatization
Ragistani Pirinda Lulz
Re: Another Victory : PPL Privatization
Desert Bird specializes in copy-paste jobs. He doesnt seem to care much for logic.
And about the original post, both UBL, and now PPL have been sold below market prices. With plenty of liquidity in the markets, its a major surprise (or maybe not) that PMLN has chosen to sell out these prized possessions for cheaper than what they are worth in the markets. Why have they been sold for less? PMLN's argument would probably be that block sales are always done at discounted prices, because of their sheer volume. But thats quite hypocritical, as on the other hand, the same PMLN is shouting out at the top of its lungs as to how the market capitalization has doubled in the recent past. So the question remains. Why have PPL and UBL been sold at under-market prices? Were there any familiar faces in the buyer's block, and was this an attempt to facilitate those friendly faces?
Its simple. There is no confidence in Pakistan and its political set up. Its not that hard. Companies that need to build capital quickly sell their shares at a lower value so that the investor can make a quick profit and stay on based on the idea that they have made a profit and will make more.
Its standard investment economic thinking.
If you sell stocks at current value few will buy because they don't see any profit realization in the near future. If you sell stakes at a lower price, they realize a profit right off the bat.
Re: Another Victory : PPL Privatization
Its simple. There is no confidence in Pakistan and its political set up. Its not that hard. Companies that need to build capital quickly sell their shares at a lower value so that the investor can make a quick profit and stay on based on the idea that they have made a profit and will make more.
Its standard investment economic thinking.
If you sell stocks at current value few will buy because they don't see any profit realization in the near future. If you sell stakes at a lower price, they realize a profit right off the bat.
I agree that Pak govt lacks the required reputation level....but in this case, it wasnt PPL, it was the govt that was looking to sell. There is an urgency to raise cash, but a few days here and there would not make a difference. Plus, the stock could have been sold at market value, or even better. There was plenty of demand. The issue was oversubscribed.
Block buyers are prohibited from selling their stakes for a pre-specified period of time. In other words, they cannot realize a profit right off the bat. For such investors, the enticement factor is dividends.
Re: Another Victory : PPL Privatization
What was the price day-before this 'strike price'?
~ Rs.211
The share price was 'brought down' from around Rs.235 in April to around Rs. 210-215 in June just before the subscription day.