TeleCard to raise Rs 4 billion through equity, debt markets

TeleCard's Board of Directors has approved a 200 percent rights offer to be issued at par value of Rs 10 per share and planned to issue terms finance certificates (TFCs) worth Rs 2 billion to expand network and provide wireless local loop services all over the country.
In a meeting held the other day, the Board considered and approved the capital-raising plan of the company in order to meet the growth requirements under the new deregulated regime in the telecom sector.
In total, 200 million new shares will be issued by the company at Rs 10 each in the ratio of two new shares for every share held to raise new equity funds of Rs 2 billion.
This will increase the total paid up capital of the company to Rs 3 billion. The Board also approved Rs 2 billion worth publicly listed TFC issue with a green shoe option of Rs 400 million.
This capital raising is part of TeleCard's plan to become the leading alternate telecom service provider in Pakistan. With the deregulation of the telecom sector, private sector has been allowed to provide competing services with the state-owned PTCL.
TeleCard has successfully obtained licenses for Long Distance and International Services (LDI) and for Local Loop Services, as well as Frequency Spectrum in an 14 telecom regions of the county enabling it to provide Wireless Local Loop (WLL) services all across the country.
Out of the expected Rs 4.4 billion raised by the company approximately Rs 3.3 billion would be paid as the WLL Spectrum Fee while the balance amount will be invested in the WLL and LDI networks.
Currently, TeleCard is the only company in Pakistan that has an existing nation-wide WLL network installed, and additional investments to be made over the next few years would be used to enhance the capacity of the network to more than 2 million customers.
The company has equipment supply contracts with industry leaders such as Alcatel, Lucent Technologies and ZTE Corporation.
With Wireless Local Loop and Long Distance and International Services licenses, TeleCard is set to provide the people of Pakistan integrated telecom services based upon state of the art technology.
The Company will now be able to offer complete telecommunication services all over the county including voice, high speed internet, voice mail, SMS, and long distance calling services.