GP to make renewed move to get listed on bourses next yr
Wednesday, 12 November 2008
FE Report
Grameenphone, the leading cell-phone company, wants to make a renewed move to get listed on the country's bourses sometime next year to raise US$125 million, the company said Tuesday.
The company will mobilise $75 million through initial public offerings (IPOs), and a further $50 million in a pre-IPO placement, newly appointed chief executive officer Oddvar Hesjedal said.
"We'll be able to submit the final IPO documents to the SEC (Securities and Exchange Commission) in next two to three weeks time…," the new company boss told reporters.
Company officials said the company is expected to be listed on Dhaka and Chittagong stock exchanges in the first quarter of 2009.
"The final IPO size will depend on the demand coming from the investors and also the result of ongoing dialogue with the government on the eligibility of the tax incentive," Mr Hesjedal said.
The announcement came a day after Mr Hesjedal took the helm of the company, replacing his Swedish counterpart, Anders Jensen.
Grameenphone resubmitted its IPO application to the capital market regulator Tuesday.
The company's board approved Monday the proposal for an IPO, but it will be "subject to necessary approvals and market conditions," the chief executive, who served the company for the last five months as chief technical officer.
In September last, the country's biggest cell phone company, valued at more than $ 3.0 billion, had delayed launching of the IPO because of the global financial crisis and potentially hesitant institutional investors.
"The shareholders of Grameenphone remain committed to the IPO, to develop the Bangladesh capital market and to share the company's success with its future shareholders," Mr Hesjedal said in a prepared statement.
In its previous proposal, the mobile operator sought to raise $300 million, of which half was to be mobilsed through a private placement while half via public offer.
Mr Hesjedal said that the company is expected to invite IPO applications from the public by the end of January subject to approval by the regulators.
The outgoing chief executive of the company, Anders Jensen, said the initial plan to offload shares of $300 million was deferred, thanks mainly to the current global financial meltdown as a large part of the pre-IPO placements were aimed at foreign investors.
He said the situation has started improving by now to restart the process.
GP's chief financial officer Arif Al Islam noted that a few foreign investors are still interested to buy the shares of GP, while the new plan might change depending on the emerging situation of market demand.
Responding to another question, Mr Jensen said the company just 'scratched the surface of the potential' in the Bangladesh market.
GP is the country's largest mobile operator, having a subscriber base of 20.8 million users in a fiercely competitive market.
With a penetration rate of 30 per cent, the country is being served by six mobile operators.
Grameenphone, the leading cell-phone company, wants to make a renewed move to get listed on the country's bourses sometime next year to raise US$125 million, the company said Tuesday.
The company will mobilise $75 million through initial public offerings (IPOs), and a further $50 million in a pre-IPO placement, newly appointed chief executive officer Oddvar Hesjedal said.
"We'll be able to submit the final IPO documents to the SEC (Securities and Exchange Commission) in next two to three weeks time…," the new company boss told reporters.
Company officials said the company is expected to be listed on Dhaka and Chittagong stock exchanges in the first quarter of 2009.
"The final IPO size will depend on the demand coming from the investors and also the result of ongoing dialogue with the government on the eligibility of the tax incentive," Mr Hesjedal said.
The announcement came a day after Mr Hesjedal took the helm of the company, replacing his Swedish counterpart, Anders Jensen.
Grameenphone resubmitted its IPO application to the capital market regulator Tuesday.
The company's board approved Monday the proposal for an IPO, but it will be "subject to necessary approvals and market conditions," the chief executive, who served the company for the last five months as chief technical officer.
In September last, the country's biggest cell phone company, valued at more than $ 3.0 billion, had delayed launching of the IPO because of the global financial crisis and potentially hesitant institutional investors.
"The shareholders of Grameenphone remain committed to the IPO, to develop the Bangladesh capital market and to share the company's success with its future shareholders," Mr Hesjedal said in a prepared statement.
In its previous proposal, the mobile operator sought to raise $300 million, of which half was to be mobilsed through a private placement while half via public offer.
Mr Hesjedal said that the company is expected to invite IPO applications from the public by the end of January subject to approval by the regulators.
The outgoing chief executive of the company, Anders Jensen, said the initial plan to offload shares of $300 million was deferred, thanks mainly to the current global financial meltdown as a large part of the pre-IPO placements were aimed at foreign investors.
He said the situation has started improving by now to restart the process.
GP's chief financial officer Arif Al Islam noted that a few foreign investors are still interested to buy the shares of GP, while the new plan might change depending on the emerging situation of market demand.
Responding to another question, Mr Jensen said the company just 'scratched the surface of the potential' in the Bangladesh market.
GP is the country's largest mobile operator, having a subscriber base of 20.8 million users in a fiercely competitive market.
With a penetration rate of 30 per cent, the country is being served by six mobile operators.