Mari Gas Company Limited was incorporated with an authorized capital of Rs 500.00 million divided into 50.00 million shares with par value of Rs 10.00 each. The initial paid up capital of Rs 210.00 million was subscribed by Fauji Foundation (40%), Government of Pakistan (40%) and Oil and Gas Development Corporation - now Oil and Gas Development Company Limited, (20%). The Government of Pakistan in 1994 decided to divest 50% of its shareholding (i.e 20% of the total paid up capital) to general public and offered its 4,200,000 shares to general public at a price of Rs 25.00 per share (including premium of Rs 15.00 per share). The Company was listed on all the stock exchanges in Pakistan. The offer was enthusiastically received by the investors, which was over subscribed by 25 times.  

As part of the financing arrangements for Development Phase V, the paid up capital was increased to Rs 367.500 million by issuing 15.750 million right shares of Rs 10.00 each at the rate of 75% to the existing shareholders. In view of the ambitious future plans of the Company and the related financing needs, the authorized share capital of the Company was duly increased to Rs 2,500.00 million in December 2001. Under Participation and Shareholders Agreement, Fauji Foundation, Government of Pakistan and OGDCL have the prospective rights over the sale of shares by any other said parties.

The present position of the equity is given below:

Under the provisions of original Wellhead Gas Price Agreement, the Company was entitled to receive a guaranteed return at the rate of 22.5% in its shareholders’ funds. The shareholders also received the annual dividend at the same rate till June 2001 when under a revision in the Wellhead Gas Price Agreement, the rate of return was increased to 30% with the provision that rate of return will increase by 1% for every increase in gas production by 20.00 MMSCF/Day. The shareholders are now receiving a dividend at the minimum rate of 30%, which is likely to increase with increase in gas production in future.