Economic Reporter :
Initial public offering (IPO) subscription of Robi-Axiata Limited, started on Tuesday as investors would be able to bid for the shares. The offer closes on November 23. General and eligible investors and non-resident Bangladeshis can apply for the shares.
Robi, the second-largest mobile network operator, is going to raise Tk 523.79 crore from its IPO, overtaking market leader Grameenphone’s floatation of Tk 486 crore in 2009.
Most investors and analysts have welcomed Robi’s IPO since they expect it to boost investor confidence. But after a few years, there might be an impact in the secondary market as the company is making available a massive number of shares.
“We are excited by the IPO because of its growth potential,” said Mohammed Rahmat Pasha, chief executive officer of UCB Capital Management, a brokerage house. “It’s a dream IPO,” he added
Usually, brokers do not show much interest in companies bearing lower earnings per share (EPS). However, Robi is different since it will properly utilise the fund to increase profits.
“So, we hope the company’s EPS will grow in the coming years along with its dividends,” Pasha said.
Robi’s EPS was Tk 0.04 in 2019.
At the end of October this year, the network provider reached the milestone of five crore subscribers in a testament to its growing influence in the local market. Grameenphone has more than 7.76 crore active subscribers.
Robi was the first operator to launch 3.5G services in Bangladesh. It rolled out 4.5G services across all 64 districts in 2018.
Since Robi is a multinational company that maintains good governance, it will attract foreign investors, said Khairul Bashar Abu Taher Mohammed, chief executive officer of MTB Capital, a merchant bank.
“The company’s EPS is very small, so investors will not get quick returns, but we hope it will grow soon.”
The market regulator should try to bring more multinational companies like Robi to the market to boost investor confidence, he added.
Initial public offering (IPO) subscription of Robi-Axiata Limited, started on Tuesday as investors would be able to bid for the shares. The offer closes on November 23. General and eligible investors and non-resident Bangladeshis can apply for the shares.
Robi, the second-largest mobile network operator, is going to raise Tk 523.79 crore from its IPO, overtaking market leader Grameenphone’s floatation of Tk 486 crore in 2009.
Most investors and analysts have welcomed Robi’s IPO since they expect it to boost investor confidence. But after a few years, there might be an impact in the secondary market as the company is making available a massive number of shares.
“We are excited by the IPO because of its growth potential,” said Mohammed Rahmat Pasha, chief executive officer of UCB Capital Management, a brokerage house. “It’s a dream IPO,” he added
Usually, brokers do not show much interest in companies bearing lower earnings per share (EPS). However, Robi is different since it will properly utilise the fund to increase profits.
“So, we hope the company’s EPS will grow in the coming years along with its dividends,” Pasha said.
Robi’s EPS was Tk 0.04 in 2019.
At the end of October this year, the network provider reached the milestone of five crore subscribers in a testament to its growing influence in the local market. Grameenphone has more than 7.76 crore active subscribers.
Robi was the first operator to launch 3.5G services in Bangladesh. It rolled out 4.5G services across all 64 districts in 2018.
Since Robi is a multinational company that maintains good governance, it will attract foreign investors, said Khairul Bashar Abu Taher Mohammed, chief executive officer of MTB Capital, a merchant bank.
“The company’s EPS is very small, so investors will not get quick returns, but we hope it will grow soon.”
The market regulator should try to bring more multinational companies like Robi to the market to boost investor confidence, he added.
