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The Financial Express

Robi seeks regulatory support to expedite its IPO process

FE REPORT | Published: May 19, 2020 12:20:05 | Updated: May 23, 2020 10:07:53


Robi seeks regulatory support to expedite its IPO process

Robi, country's second largest mobile operator, has sought the regulatory support to expedite the completion of process of the company's IPO (initial public offering) proposal.

Mahtab Uddin Ahmed, the CEO and managing director of Robi, sought the regulatory support on Monday while making a courtesy call on the newly-appointed chairman of the securities regulator professor Shibli Rubayat Ul Islam.

Asked, Mohammad Saifur Rahman, an executive director of the Bangladesh Securities and Exchange Commission (BSEC), said the CEO of Robi has made a courtesy call on the chairman.

"Besides, he has also sought the regulatory support to expedite Robi's IPO proposal. Our chairman has assured of his support in line with the rules and regulations," Mr. Rahman told the FE.

In early March, Robi submitted its IPO proposal to the securities regulator.

The operator plans to raise a capital worth Tk 3.87 billion for the purpose of network expansion.

It will raise the capital offloading 10 per cent or 523.8 million shares under the fixed price method.

Of the proposed amount of shares, 387.80 million will be issued to the general public and institutional investors.

The remaining 136.10 million will be issued to employees and directors under the employee share purchase plan.

After the listing of Grameenphone, Robi will be the second largest listed mobile operator if the regulator approves the company's IPO proposal.

Robi reportedly has set two conditions for proceeding with the IPO.

The first condition is that the operator's corporate tax must be brought down by at least ten percentage points. The operator pays 45 per cent corporate tax at present.

The second condition is the withdrawal of 2.0 per cent minimum income tax on overall revenue that the government has already imposed.

mufazzal.fe@gmail.com

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