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October 04 2009
The subscription of
Grameenphone's initial public
offering (IPO), the largest
of its kind in Bangladesh's
capital market history, began
nationwide this morning.
The subscription will close
Thursday for resident
Bangladeshis, but will remain
open for non-resident
Bangladeshis until October 18.
The IPO applications can be
submitted at any of 503
branches of 15 selected banks
and the Investment
Corporation of Bangladesh.
The 15 selected banks are
Citibank NA, Bank Asia, BRAC
Bank, Dutch-Bangla Bank,
Eastern Bank, EXIM Bank, IFIC
Bank, Mercantile Bank,
National Bank, One Bank,
Premier Bank, Standard
Chartered Bank, The City
Bank, Trust Bank and United
Commercial Bank.
As per the final approval
from the Securities and
Exchange Commission on August
20, Grameenphone, the
country's largest mobile
phone operator, will float
69,439,400 ordinary shares of
Tk 10 each, in addition to a
Tk 60 premium per share, to
raise Tk 486.08 from general
public.
The company plans to use the
issue proceeds for expanding
its network, developing
information technology and
for other general corporate
purposes.
As the market lot has been
fixed at 200 shares, a
prospective investor will
have to deposit Tk 14,000
with his/her IPO application.
Grameenphone's pre IPO or
private placement of Tk
486.07 crore has been
completed in December last
year.
Citigroup Global Markets
Bangladesh Private Ltd is the
issue manager of the IPO.
Norway's telecom giant
Telenor owns 62 percent of
Grameenphone, launched in
1997, while local Grameen
Telecom owns the rest.
AFP adds: Analysts expect the
Initial Public Offering (IPO)
to raise 141 million dollars
and be several hundred times
oversubscribed.
"It's the biggest IPO in the
capital market since our
independence in 1971," Dhaka
Stock Exchange President
Rakibur Rahman said.
"Almost everyone in the
country, who has an account
number, is vying for a slice
of the pie," he added. "Many
have already disposed of
shares of other companies,
while some have even sold
gold jewellery to join the
bonanza."
Officials said some 150,000
new share accounts a tenth of
the total number in the
country had been opened in
the past three months as
potential investors readied
to qualify to take part in
the IPO.
Securities and Exchange
Commission Chairman Ziaul Haq
Khandekar hailed the IPO as
a "watershed event," saying
it would bring "depth and
maturity" to the country's
share market.
"The GP IPO will bring
qualitative change to the
market. I think the move will
instil confidence in other
major companies to follow
suit. It will make the stock
market more stable and the
centre of our economic
activity," he said.
Source: The Dailystar
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