Wateen Telecom plans to offer 110 million shares: AHL financial adviser for proposed IPO

Wateen Telecom Limited (WTL) has planned to offer 110 million ordinary shares to the general public at a price of Rs 10 per share with a greenshoe option of 90 million shares, it is learnt. In this regard, WTL has applied for listing at Karachi Stock Exchange (KSE). Arif Habib Limited has been mandated to act as Financial Advisor and Arranger for the proposed Initial Public Offering (IPO) of Rs 2,000 million of the ordinary shares of Wateen Telecom Limited.
The IPO consists of 110 million ordinary shares to be issued at an offer price of Rs 10 per share with a greenshoe option of 90 million shares. The proceeds of the issue will be utilised in meeting financial obligations of the company and for the acquisition. Sources said that Arif Habib, being advisor and arranger of the proposed IPO, has formally contacted with the underwriters.
It has written a letter to some 50 institutions inviting them to participate in the underwriting consortium being arranged for the IPO. The Arif Habib has sent detailed Information Memorandum on the Company and the Transaction to the underwriters seeking their firm commitment to participate in the underwriting consortium.
The KSE witnessed only three IPOs in calendar year 2009 amid depressing values and investors risk aversion after one of the worst market crises. All these three IPOs held in the second half of the year, as no company came for listing at the KSE in the first half of the year. In the year 2008, out of total 10 IPOs, nine offerings were made before imposition of price floor.
Analysts say that IPOs is one of the major barometers of market development and instead of moving forward, Pakistan stock market is not growing in this regard. In the KSE history, the decade of 1990s was a booming period for IPOs when on an average approximately 30 offerings were made in a typical year thereby causing the listed firms at KSE to increase from 487 in 1990 to 767 in 2000.
Due to lesser offerings in the last 10 years coupled with mergers and acquisition, listed firms in Pakistan fell to just one percent of total registered companies. Analysts believe that the year 2010 would be better in this regard as more IPOs are expected this year.