Robi’s currency markets debut on Thursday
Robi Axiata's initial public offering (IPO) is defined going to the secondary market on Thursday.
The business raised Tk 523.7 crore from the stock market by offloading 52.37 crore shares for Tk 10 apiece, eclipsing Grameenphone's Tk 486.1 crore floatation back 2009.
Of this amount, around Tk 136 crore came from the telecom operator's employees while the remaining Tk 387.7 crore grew up from the market. Although it was the biggest IPO in the country's history, it was oversubscribed 5.74 times carrying out a great hype among investors in the run up.
Being a multinational company, investors have huge expectations on the country's second major telecom operator, said stock investor Zahidul Islam.
"Although its profits are still very low in comparison to its paid-up capital, we hope it'll increase following the IPO funds are utilised," he added.
Robi's paid-up capital stood at Tk 4,714 crore while its turnover Tk 7,481 crore in 2019. Meanwhile, its net profit was around Tk 20 crore and earnings per share Tk 0.04.
Besides, the telecom operator posted a 77 per cent plunge in profits between July and September from a year earlier.
With the IPO proceeds, it'll expand its network coverage as a way to grab more of the marketplace share in the united states.
Robi had 5.1 crore subscribers towards the end of November, which is 30 % of the marketplace, while Grameenphone has a lot more than 7.76 crore active subscribers.
"We are proud to be on the verge of making our debut in the currency markets with the country's major ever IPO," said Shahed Alam, chief corporate and regulatory officer of Robi.
"Our focus will now turn to ensure we deliver the most innovative digital lifestyle solution for our customers while safeguarding the interest of our valued local and foreign shareholders," he added.
The company will be traded in the N category with the trading code Robi.
The Bangladesh Securities and Exchange Commission approved Robi's IPO on September 23, and can raise funds from the stock market by issuing shares under the fixed price method.
Robi was the first operator to roll out 3.5G services in Bangladesh. After that it introduced 4.5G services across all 64 districts in 2018.
Robi was also the country's first operator to check 5G service on its network.
The carrier started its journey in 1997 beneath the brand name Aktel. It then changed its name to Axiata (Bangladesh) in '09 2009 and then to the present Robi Axiata this year 2010.
