Mobile telephone operator Wataniya Palestine launched an initial public offering (IPO) on Sunday to raise $50 million for financing an expansion of its network, the firm's chief executive said. The company, part owned by Qatar Telecommunications Co, is offering 38.7 million shares at $1.3 per share, equivalent to 15 percent of its shares.
Subscription closes on December 2. Last week, Wataniya said revenue rose to $11.3 million in the third quarter from $9.1 million in the second quarter and $4 million in the first quarter, when it began recording revenue. The firm began functioning as the second mobile operator in the Palestinian Territories a year ago after entering the market as a competitor to Jawwal, owned by The Palestine Tele-communications Co.
The 38.7 million shares to be floated will be traded on the Nablus-based Palestine Exchange within 30 days after the IPO closes on December 2. Wataniya will join 40 companies listed on the bourse, which have a combined market capitalisation of around $2.5 billion. Another 15 percent tranche will be offered to the public within four years, sources familiar with the matter said.
Wataniya Palestine is 53 percent owned by Qatar Telecommunications and 47 percent by the Palestine Investment Fund (PIF), which is owned by the Palestinian Authority. Those stakes are set to drop to 40 percent and 30 percent respectively after 30 percent is sold to the public.