Wateen’s IPO Happens, will Offer 110 Million Shares

Wateen Telecom Limited has planned to offer 110 million ordinary shares to the general public at a price of Rs 10 per share with a greenshoe option of 90 million shares, reported business recorder today.

In this regard, Wateen has applied for listing at Karachi Stock Exchange (KSE). Arif Habib Limited has been mandated to act as Financial Advisor and Arranger for the proposed Initial Public Offering (IPO) of Rs 2,000 million of the ordinary shares of Wateen Telecom Limited, further said the paper.

First announced in October 2009, Wateen will use the funds to meet company’s financial obligation. WiMAX provider has faced tough cash in hand situations, recently. Company has tried various options including aggressive service offerings and sell out.

Quoting the sources, Business recorder has claimed that Arif Habib, being advisor and arranger of the proposed IPO, has formally contacted with the underwriters.

It has written a letter to some 50 institutions inviting them to participate in the underwriting consortium being arranged for the IPO. The Arif Habib has sent detailed Information Memorandum on the Company and the Transaction to the underwriters seeking their firm commitment to participate in the underwriting consortium.

Via Business Recorder

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

  • Wateen is a loss making entity – they could not have picked a worse time to go IPO as typically firms want to get the best price for their stock.

    Although in Pakistan, stocks are traded more on “sata” concepts so who knows, this might be the best IPO in KSE’s history!
    I’ll abstain from any investment though.

  • But the share price they have offered is quite attractive and underpriced , so there will be a shotup in the price with in an year , the price of their shre will remain btw 20 to 25 with in one year

  • If worldcall is trading below rs. 4 and a giant like ptcl at rs. 19, then wateen is overpriced for the ipo. ipo price should not be more than rs. 4-5 to generate interest. What were wateen’s earnings for 2009? what is the p/e ratio for telcos in pakistan? need to know earnings before investing.

    • but sir p/e ratio is not the only tool to check the organization there are many factors who r involved to adjust the price

  • Rupee 10 is an attractive price for any one in the stock market regardless of their earnings. less than 10 will give a negative signal to the market. i think 10 is the optimal price been set.

    And i am expecting the price to get doubled in one year

  • Good one!

    We should have more IPO in this sector. Because this way more disclosure will be required and share holders will also be able to drive the companies.

    Let’s see how it goes and who else is going to follow!

  • Wateen is a highly mis-managed company and it is very difficult for them to follow and complete the regulations applicable to the listed companies. To a greater extent, Wateen lacks true and professional management, and everyone knows about the facts and stories about their CEO. Apart from this, as correctly pointed out by someone, that at present almost all Telco’s in Pakistan have a negative bottom line, and not paying anything to their Shareholders. How can one expect a positive response from Market for this IPO.

  • i think this is a good step …. considering their price… it definately sounds interesting… look who knows…. this world is full of wonders… this might be the best thing KSE gives us ….. I say let’s go it

  • i think this is a good step …. considering their price… it definitely sounds interesting… look who knows…. this world is full of wonders… this might be the best thing KSE gives us ….. I say let’s go for it….. but I’d like to say let’s do a few calculations at our end to help make the decision

  • those who want to invest in telecom there is an opertunity for them to aquire wateen stock at a discout of 35.1% current price is 6.49 innitials two months before shares were offered at Rs 10

  • What about buying now at Rs 3.80 a whopping 62% discount? The way incompetent management is mismanaging this company will even wipe out the current market value of 3.80 rupees.
    They got Rs 2B in IPO they lost all of it in last fiscal year. Now they got 2.1B more which of course is not free money and this liability has to be paid. I am wondering what is their model of success and what vision Wteen’s management has for the company & the share holders.

  • i have a better opportunity as compare to wateen
    if some one really wants to investment in a safe mode and also secure future of family
    just contact me 03335404038

  • close