KARACHI: Wateen Telecom Limited (WTL) on Wednesday announced Initial Public Offering (IPO) for the issuance of 110 million shares with a Green-shoe option of 90 million shares at an offer price of Rs10 per share.
The subscription dates have been set at April 20 and 21.
Addressing a press conference, Wateen Telecom Chief Executive Officer Tariq Malik said that the company had decided to issue additional 110,000,000 shares to institutional investors and general public at a price of Rs10 per share, amounting Rs1.1 billion with a Green-shoe option of 90,000,000 ordinary shares.
This public offering will increase the paid-up capital of the company from Rs4.174 billion to Rs5.275 billion, he said, adding that the proceeds of the IPO will be utilised to retire long-term financial obligations of the company and acquire Wateen Solutions (Pvt.) Limited to make it a wholly-owned subsidiary.
He said that Wateen is offering its share to the public at Rs10 per share against the intrinsic value of Rs52 so as to invite a larger response of the public.
Arif Habib, Chairman, Arif Habib Limited, which is the adviser and arranger of the offering, said that it is a good opportunity for the public, as WateenÃs growth had been quite impressive during the last four years and the company had strong backing of Abu Dhabi Group.
He said that this development will serve as an impetus for the stock market and yield healthy returns for the investors, as the offer was placed at Rs10 per share against the intrinsic value of Rs52.
The minimum subscription threshold has been divided into four categories comprising applications for 500, 1,000, 3,000 and over 3,000 shares to accommodate all the segments of individual and institutional investors.
The company enjoys a strong sponsorship of Warid Telecom International LLC and Bank Alfalah Limited; both companies are backed by the Abu Dhabi Group.
Source The News
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