MCB Bank officially announced on Wednesday that it has successfully raised $150 million (Rs9 billion) through the

issuance of 8.622 million shares in the form of Global Depository Receipts (GDR), to be listed on London Stock Exchange. Each GDR represents four underlying equity shares, priced at $17.40 (Rs264 per equity share). This landmark transaction represents the first GDR offering for a Pakistani issuer in over 10 years. Following the offering, MCB will be the first Pakistani company to be listed on the LSE for trading on the Professional Securities Market. The GDR issue attracted demand in excess of $700 million from over 50 investors globally, a press statement said. Capital One Research analyst Faisal Shaji in a report said that among the 31 overseas banks listed on the LSE, MCB Bank would be the first Pakistani bank to mark its presence globally. Indias State Bank of India and UTI Bank have a market capitalisation of GBP742.98 million, whereas MCBs GDR would approximately be around GBP81 million ($150 million). Given the demand potential of $700 million for the said GDRs and the recent mergers and acquisition activity in Pakistan by foreign banks, it can be safely assumed that the trading sessions will receive greater investment furore. Therefore, MCB GDR issue in the international market would be the fourth in line in Pakistans history. Muhammad Imran of JS Research in his report revealed that in Sept 1994, Government of Pakistan issued five million PTCL vouchers at a price of $179.62 per voucher, where each voucher was equivalent to 100 ordinary shares. Prior to this international issue, the government in Aug 1994 issued one million vouchers at a price of Rs3,000 per voucher (Rs30 per share) to local investors. This was the first GDR offering by any company in Pakistan. HUBCOs GDR issued on Oct 9, 1994 was offered at a price of $10.825 per GDR and comprised 404.6 million shares. Out of the international offer, 69.28 million shares were offered to the public in Pakistan. In this issue, one GDR consisted of 25 ordinary shares.

The GDR of Chakwal Cement (now Pakistan Cement) was issued on Apr 25, 1995. One GDR was equivalent of 25 ordinary shares. The offer price for GDR was $9 per GDR. Out of current 562.5 million shares, 278 million shares were issued by the company under GDR on Apr 25, 1995, whereas, local IPO for 60.3 million shares took place on Nov 1, 1995. Shares were issued at par of Rs10 per share.
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