15 April 2010
Wateen Telecom announced that it will issue 110 million ordinary shares through an initial public offering (IPO) at Rs 10 per share with a greenshoe option of up to additional 90 million ordinary shares. The subscription date for the IPO is 20 and 21 April 2010. Arif Habib Limited has been appointed as the Joint Advisor and Arranger of the proposed IPO of Wateen Telecom.
On 14 April, Tariq Malik, CEO of Wateen Telecom, gave an in-depth presentation to the members of the Karachi Stock Exchange and investors regarding the company’s financial position, performance and the IPO. Incorporated in Pakistan under the Companies Ordinance 1984 on 4 March, 2005, Tariq Malik asserted that Wateen is now the largest alternative LDI operator in Pakistan.
He explained that the objective of the proposed IPO is to repay Rs 1.469 billion to financial institutions against the company’s obligations arising out of payment of L/Cs and for acquiring 49% shares of Wateen Solutions amounting to Rs 490 million to make it a wholly owned subsidiary of Wateen Telecom. The IPO will also broaden the investor base and ensure public participation in the company.
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.
Chairman 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 history. He said that 30% shares of the total IPO have been allocated for the applicants of 500 shares, 25% each to 1000 and 3000 shares and 20 % shares for 5000 shares.
