ETL postpones IPO until next month

ETL postpones IPO until next month

Enterprise of Telecommuni-cation Lao (ETL) has decided to postpone its initial public offering (IPO) of shares until the end of next month, according to a senior company official.

ETL Chief Finance Officer Mr Keoviengxay Souliya said yesterday the company had revised its plans to issue a prospectus and IPO from the middle of September to the end of October.

“We have submitted our proposal to issue a prospectus to the Lao Securities Exchange Commission. We expect to receive approval this week.”

He said once ETL receives the go ahead from the commission to issue a prospectus it will begin to promote its IPO, adding that the company plans to promote its share offering to investors in Singapore and Hong Kong next week.

Mr Keoviengxay also said ETL plans to promote its IPO in Laos early next month, before allowing Lao nationals to subscribe for shares at the end of October. The price of shares in the IPO is expected to be between 4,300 and 6,000 kip per unit, he said.

The company expects to list about 23 million shares on the Lao Securities Exchange in November.

According to ETL, the government plans to sell 30 percent of its shareholding in the company to the public, hoping to mobilise funds of about US$19 million. About 5 percent of the shares will be sold to company staff, 15 percent to domestic investors and 10 percent to foreign investors.

ETL is one of four major telecommunication companies in Laos. The company provides mobile phone and fixed line telephone services, as well as an international gateway service for other telecom companies in the country.

At present, ETL has about 960,000 mobile phone subscribers, accounting for about 35 percent of the Lao telecom market. The company launched its 3G network last month and expects the new service to attract more customers.

ETL Director General Mr Khammouane Xomsihapanya expressed confidence that the company would continue to grow in the coming years, despite facing strong business competition.

About 83 percent of the Lao population have a mobile phone, leaving just 17 percent of the market to be tapped.

The government recently ordered telcos in Laos to stop providing promotions such as free simcards, SMS and call time to ensure the companies can operate sustainably and make a profit in the competitive telecom market.

vientiane times