SECP Approves Wateen’s IPO

SECP has approved the Initial Public Offering (IPO) of Wateen Telecom Limited and fixed April 13, 14 and 15 as dates for subscription of shares.

The IPO is the largest one through which the company will get Rs 2 billion from the country’s stock market thus expanding its paid up capital which has been approved by its sponsor directors.

Wateen Telecom Limited after getting itself listed at the KSE, would be offering its 110 million shares to raise capital by Rs 1.1 billion with a green shoe option of 90 million shares at the face value of Rs 10 per share through an IPO to general public and institutional investors.

Abu Dhabi Group has already approved this strategic decision. Company has posted a profit after tax of Rs 1.018 million by the end of fiscal year 2008-2009, which translates into an earning per share of Rs 4.88.

Via Daily Times

  • This is what I call dilution of losses. The IM portrays a rosy picture at a time when telecoms in Pakistan are going throught the worst post deregulation phase.

    So it seems that this is more of a loss dilution activity and general public will be the likely victim of market and business failure in the next 3 to 5 years for whuich a lot of promising and false hope has been built.

  • Pro Pakistani should do an independent analysis of Wateen’s IPO.

    The company after 4 yrs of operations is likely to incur losses as well as reduction in revenue.

    how come the revenue doubles all of a sudden to 19 billion next year i.e. 2010-11?

    Wateen has adebt of 22 billion and 1.5 billion will be used to offset this debt…equity is a more expensive form o capital so how does wateen explain this reayment that will not even reduce its liabilities by 10%.

    The valuation of wateen solutions is also quite questionable.

    In my view the managemen will buy more time for a bigger disaster….and like always general ublic will suffer because the underwriters and arrangers will get their commissions and kickback through one or the other route….and some institutions will suffer because of their imprudent decisions.

  • Wateen Product Portfolio

    Wateen offers a wide range of product portfolio to its valued clients, which include:

    · Wholesale products Retail products

    · Dark Fiber Broadband Internet

    · Lambda Service Data Portfolio

    · Managed Capacity Telephony – consumer

    · DPLC & IPLC and Transit Wateen Audio Conferencing

    · Co-location / Tele-housing Wateen Video Telephony

    · Value Added Reselling (VAR) Carrier Pre-Select (CPS)

    · Professional Services Calling Card / Calling account

    · Managed Network Services (MNS)

    · Hosted Solutions

    Points to Remember

    · Per share value: PKR 10

    · Minimum investment: PKR 5000 or 500 shares

    · Payment terms: cross cheques/demand draft/pay orders

    · Beneficiary (Cheque to be made in name of): Initial Public Offering of Wateen Telecom Limited

    · Subscription dates: 20-21 APR 2010

    · Per applicant subscription: one subscription per person is allowed/one CNIC one application

    · Forms available from: All Wateen Business Centers, Franchises and and in Major Banks

  • How can I buy this IPO when the Pakistani banks having branches in Sharjah do not have any info about it. On the other side their big names are written in published details. At the same time Wateen IPO is available for overseas pakistanies.
    Can you advise me what to do in this regard or its a simple joke.

  • Hi,
    Waqar I guess you’ll find something online about this…. but yes it is a good investment. The expected return is above 100% as far as my friend’s calculation tell me. I have been surfing to get more insight on this too.

  • Latest breaking news….

    CEO of Wateen Mariq Malik has resigned. Previously, just a couple of days ago, the CFO of Wateen had resigned.

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