Wateen Telecom Limited will float initial public offering (IPO) worth Rs 2 billion in Pakistan equity market on April 20-21 in order to expand its infrastructure network and retirement of debt.
The telecom giant will issue 110 million shares to institutional investors and general pubic at a price of Rs 10 per share amounting to Rs 1.1 billion with a green shoe option of 90 million ordinary shares. This will increase the paid up capital of the company from Rs 4.174 billion to Rs 5.275 billion.
The equity generated amount will be repaid to financial institution on the account of Letter of Credits (LCs) worth Rs 14 billion and produce capital for the company to acquire the rest of 49 percent shares in Wateen Solution (Pvt) Ltd. The shares’ subscription will be categorised into four for the various classes of investors. The IPO’s are pledged to underwrite by 14 leading banks of the country. Wateen Telecom CEO Tariq Malik said the company has long-term and committed investment plans in the country despite any political economy and law and order situation of the country.
The company is playing an active role in making Pakistan a regional hub for information and communication network with its optic-fiber international gateways.
Wateen is laying optic-fibre to connect India at Wagah and Chaman and Tukhum to link Afghanistan, he said and added it will offer services to various telecommunication services inside and in neighboring countries of Pakistan. Malik said the company is aggressively pursuing its multiple plans in all its services including wireless telephony, broadband and infrastructure services that will enhance its revenues manifold. Its corporate clients include leading financial institutions, cellular phone companies and television channels. The company has acquired a lion’s share in international calling traffic and it has been a leading performer in broadband and wireless local loops sectors. Arif Habib Group of Companies Chairman Arif Habib said the equity markets have shown impressive performance in the past few weeks on the stable cooperate sector and its flourishing financial health.
He said the opportunities are lucrative in Pakistani equity markets for local and international investors as it is recognised by all rating and financial institutions as the best market in delivering handsome returns with the lowest business cost. Arif Habib said the clouds of crisis in judiciary, politics and economy have been scattered and the situation is improving in the country for business and investments. The developments on judiciary, NFC Awards and tabling of 18th Amendment are good signs for the country’s stability that will be weighed positively by international rating agencies.
via Daily Times
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