Robi gets nod to raise Tk 5.2bn through IPO for network expansion

Robi, the second-largest mobile network operator in Bangladesh, has been given the green light to raise Tk 5.2 billion from the capital market through an initial public offering (IPO) to expand its network.

News Deskbdnews24.com
Published : 23 Sept 2020, 12:31 PM
Updated : 23 Sept 2020, 01:27 PM

The Bangladesh Securities and Exchange Commission or BSEC approved the operator's plans to offload about 523.8 million shares on the Dhaka and Chattogram stock exchanges in a meeting on Wednesday, the regulator said in a statement.

The proceeds from the proposed listing will be used to expand Robi's capital expenditures and enhance its profile as one of the leading mobile telecommunication services in Bangladesh, Robi's parent company Axiata Group had said in February.

Robi has appointed IDLC Investments Ltd as the issue manager for the IPO.

With an issue size of Tk 5,237 million, Robi's is set to be the biggest ever IPO in Bangladesh, IDLC said in a statement.

"The IPO proceeds will be used for network expansion. As the second entrant of the telecommunication sector in the capital market, the listing of Robi will significantly boost the market capitalisation," IDLC's Managing Director Md Moniruzzaman said.

In the conditions announced by CEO Mahtab Uddin Ahmed in February, Robi asked that the government lower its turnover tax to 0.75 percent from 2 percent, and cut corporate tax to 35 percent from 45 percent, both for 10 years.

The telecom operator has not heard officially from the government yet.