Bangladesh's Grameenphone Plans Stockmarket Floatation

Bangladesh's largest mobile operator, Grameenphone has plans for a stock market floatation in the third quarter of this year, according to local reports citing a document submitted to the telecoms regulator last month.

Citigroup Global Markets is currently preparing a valuation of the company which is expected to be presented to the board of the company next month for approval. If everything proceeds smoothly, then the company expects to list on the Dhaka Stock Exchange sometime between July and September.

Grameenphone is 62 percent owned by Norway's Telenor and 38 percent by local Grameen Telecom.

Last year, Grameen's chief executive officer Anders Jensen confirmed that a floatation would happen, but expected that less than 10% of the company would be offered in the initial stage.

According to figures from the Mobile World, Grameenphone ended last September with just over 15 million subscribers, giving it a market share of nearly 48%.

There has been tension in the past between the two co-owners of the phone network, with the Nobel Price winning founder of Grameen Bank claiming that Telenor has reneged on an agreement to allow the bank to take a controlling stake in the phone company.

Grameenphone originally received a license for cellular phone operation in Bangladesh from the Ministry of Posts and Telecommunications on November 28, 1996. Grameenphone started operations on March 26, 1997, the Independence Day in Bangladesh.

Posted to the site on 2nd January 2008