Nepal Telecom Prepares for Stock Market Floatation

Nepal Telecom is expecting to float on the local Kathmandu Stock Exchange next week in what could be the country's largest ever floatation. The IPO is expected to sell 10% of the company and raise around US$140 million for the company. A former government monopoly, it was converted into a Public Limited Company in April 2004.

An official at NT told the local media that an individual or organization is allowed to buy maximum 5,000 shares. The shares will be allotted to applicants who quote the highest price, he said. The minimum price of each share is fixed at Rs 600 (that is, face value of Rs 100 each and a premium of Rs 500 per share) for public bidding. Its offering will last for 35 days.

Nepal Telecom is the country's largest operator with an estimated 842,000 subscribers at the end of last September. Spice Nepal, which launched its network at the end of 2005 is fast catching up though, and the Mobile World estimates it had 796,000 subscribers at the same period.

On the web: Mobile World - Nepal Telecom

Posted to the site on 17th January 2008