Wateen Telecom has announced to issue 110 million ordinary shares through initial public offering (IPO) at a price of Rs 10 per share with a greenshoe option of up to additional 90 million ordinary shares. In this regard, Wateen Telecom organised a presentation at the auditorium of Karachi Stock Exchange (KSE) here on Wednesday to brief the members of the exchange and investors about the IPO.
Tariq Malik, CEO of Wateen Telecom, gave a detailed presentation about the company's financial position, performance and the IPO. He announced that the subscription date for the Wateen Telecom IPO would be April 20 and 21, 2010. Arif Habib Limited has been appointed as the Joint Advisor and Arranger of the proposed IPO of Wateen Telecom.
He said that the purpose of the proposed IPO is to repay Rs 1.469 billion to financial institutions as against the company's obligations arises out of payment of L/Cs and for acquiring 49 percent shares of Wateen Solutions amounting to Rs 490 million to make it a wholly owned subsidiary of Wateen Telecom. It will also support to broaden the investors' base through an increase in the number of shareholders and provide the public investor an opportunity to participate in the future of the company with sound prospects, he added.
About the company, he said Wateen Telecom was incorporated in Pakistan under the Companies Ordinance 1984 on March 04, 2005 and now Wateen is the largest alternative LDI operator in Pakistan. The underwriters of the IPO include National Bank of Pakistan, Atlas Bank, Arif Habib Limited, Habib Bank, MCB Bank, Bank of Khyber, Askari Bank, Allied Bank, KASB Bank, Pak Oman Investment Co, Arif Habib Bank, Faysal Bank, Pearl Securities and Wincom Limited.
Speaking on the occasion, the Chairman of Arif Habib Group, Arif Habib said that the SECP has approved four categories for subscription of the proposed IPO of Wateen Telecom for the first time in the history. He said that 30 percent shares of the total IPO have been allocated for the applicants of 500 shares, 25 percent each to 1000 and 3000 shares and 20 percent shares for 5000 shares.
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