October 08,2009

The subscription of Grameenphone's initial public offering, the largest in Bangladesh's capital market history, ends today amid signs of overwhelming responses from prospective investors.

For non resident Bangladeshis, the subscription will continue until October 18.

“We are receiving very positive responses from IPO applicants,” said Mesbah Ahamed, head of operations of Citigroup Global Markets Bangladesh Private Ltd, the issue manager of the IPO.

The IPO has already been oversubscribed, said Ahamed, who visited 20 branches of different banks in the city and witnessed long queues of applicants there.

A similar picture was seen at 503 branches of the 15 selected banks and Investment Corporation of Bangladesh where the prospective investors, comprising retired officials to students, lined up to deposit money against Grameenphone shares.

“The final report on IPO subscription will be available next week,” he said.

Grameenphone, the country's largest mobile phone operator, looks to raise Tk 486.08 crore from the public by issuing 69,439,400 ordinary shares worth Tk 10 each, in addition to a Tk 60 premium per share.

Grameenphone, which received the final approval from the Securities and Exchange Commission on August 20, will use proceeds from the issue to expand its network and develop information technology and for corporate purposes.

Grameenphone is 62 percent owned by Telenor of Norway and the rest by Grameen Telecom, a subsidiary of micro finance giant Grameen Bank, which was set up by Nobel peace prize winner Muhammad Yunus.

It has around 21.16 million of Bangladesh's fast growing 48 million cellular subscriber base. It is also the country's largest private company by revenue.

Source: The Dailystar