Banglalink Digital Communications Limited – the third-largest telecom service provider in the country – is keen to raise Tk900 crore from the stock market.
To this end, the company, which has a paid-up capital of over Tk8,000 crore, will offload 10% of its shares at a face value of Tk10.
Once listed, it will be the company with the highest paid-up capital in the stock market, according to officials at the Bangladesh Securities and Exchange Commission (BSEC).
At the same time, Banglalink will be the third multinational telecom service provider to get listed on Bangladesh’s stock exchanges.
On Tuesday, senior Banglalink officials led by VEON Chief Executive Officer Kaan Terzioglu held a meeting with BSEC Chairman Shibli Rubayat-Ul-Islam to discuss the listing procedures.
Banglalink is fully owned by Malta’s Telecom Ventures Ltd (previously Orascom Telecom Ventures Ltd), a 100% owned subsidiary of Global Telecom Holding, which is, in turn, a subsidiary of the Dutch holding company VEON.
BSEC Commissioner Shaikh Shamsuddin Ahmed told The Business Standard, “The company wants to raise around Tk900 crore through an initial public offering (IPO) under the fixed price method.”
“The commission is eager to enlist it despite having some indications of weakness in the financial health of the company that needed to be addressed,” he added.
Earlier, multinational telecom service providers Grameenphone and Robi Axiata got listed on the country’s capital market in 2009 and 2020, respectively, by issuing 10% shares each.
Launched in February 2005, Banglalink has recently reached the landmark of 4 crore subscribers.
It has reported a 12.1% growth in revenue for 2022.
Its revenue grew to Tk5,347 crore, up from Tk4,794 crore, while its data revenue grew by 26.6% in 2022.
Taimur Rahman, chief corporate and regulatory affairs officer of the company, said, “Banglalink has been a catalyst for making telecom services affordable for the masses. It has been consistently performing well, and the recent result indicates a strong foundation for future sustainable performance.
“With double-digit revenue growth and an exceptional digital services offering in the market, Banglalink is now serving more than 40 million customers nationwide.”
“VEON sees a long-term opportunity in Bangladesh and would like to make the people of Bangladesh a part of Banglalink’s success story. In line with this, VEON had a good discussion with the BSEC and would be working together to explore future opportunities,” he added.