Banglalink won't float IPO in next two years
Thursday, 16 October 2008
Jasim Uddin Haroon
Banglalink, country's second largest mobile phone operator, will not go public within the next two years as the company is not financially sound enough to float initial public offering (IPO), company sources told the FE Wednesday.
The Securities and Exchange Commission (SEC) has issued a waiver letter in support of the financial position of the company, which is required to float IPO as per directives of the Bangladesh Telecommunication Regulatory Commission
"We got a waiver letter from the SEC for the next two years," said a Banglalink executive.
Earlier, the company wanted to go public to strengthen its capacity especially in terms of its network expansion.
Around one year back, a team of high officials of the Banglalink, a brand of Orascom Telecom Bangladesh Limited, also visited the SEC seeking permission for offloading 10 per cent of its shares through direct listing procedures.
As part of its move to enter the stock market, it also formed a committee comprising seven members to be eligible for the IPO.
The committee comprised four members, one each from Egypt and Bangladesh and two from Pakistan.
"We are still a loss-making organisation and SEC generally discourages such companies to go public," the official said seeking anonymity.
He, however, said, Egypt-based Orascom Telecom is now contemplating pouring additional funds to make the organisation profitable.
He said so far Orascom invested Tk 25 billion in the company and only during the last three months ending September it invested US$ 180 million in support of Banglalink.
Company officials said Banglalink is expecting to receive more $350 million within the first quarter of 2009 and most of which will be invested in network expansion and customer care centres.
Banglalink, country's second largest mobile phone operator, will not go public within the next two years as the company is not financially sound enough to float initial public offering (IPO), company sources told the FE Wednesday.
The Securities and Exchange Commission (SEC) has issued a waiver letter in support of the financial position of the company, which is required to float IPO as per directives of the Bangladesh Telecommunication Regulatory Commission
"We got a waiver letter from the SEC for the next two years," said a Banglalink executive.
Earlier, the company wanted to go public to strengthen its capacity especially in terms of its network expansion.
Around one year back, a team of high officials of the Banglalink, a brand of Orascom Telecom Bangladesh Limited, also visited the SEC seeking permission for offloading 10 per cent of its shares through direct listing procedures.
As part of its move to enter the stock market, it also formed a committee comprising seven members to be eligible for the IPO.
The committee comprised four members, one each from Egypt and Bangladesh and two from Pakistan.
"We are still a loss-making organisation and SEC generally discourages such companies to go public," the official said seeking anonymity.
He, however, said, Egypt-based Orascom Telecom is now contemplating pouring additional funds to make the organisation profitable.
He said so far Orascom invested Tk 25 billion in the company and only during the last three months ending September it invested US$ 180 million in support of Banglalink.
Company officials said Banglalink is expecting to receive more $350 million within the first quarter of 2009 and most of which will be invested in network expansion and customer care centres.