ETL confident of growth as IPO approaches
ETL confident of growth as IPO approaches
An Enterprise of Telecommunication Laos (ETL) executive has expressed confidence over growth of the company despite increasing competition in the Lao telecom market of 6.5 million consumers.
“We have committed to delivering quality services and we expect to attract more customers,” ETL Director General Mr Khammo uane Xomsihapanya said yesterday.
ETL will launch an initial public offering (IPO) in the middle of this month before listing on the Lao Securities Exchange, so potential investors are keen to know more about ETL's expansion plans in the competitive telecom sector.
According to a report from the Ministry of Post, Telecommunications and Communication, 83 percent of the population has a mobile or home phone subscription, leaving only 17 percent as yet untapped by telecom companies.
With four major telcos operating in Laos, increasing competition recently led the government to order the companies to stop offering special promotions such as free call time and SMS.
Mr Khammouane said that, despite the strong competition, ETL hopes to attract 3,000 to 5,000 new customers this year, with the launch of its 3G network at the end of last month expected to provide an extra boost.
ETL plans to add 15,000 to 20,000 new subscribers in 2012, adding to the company's existing 960,000 customers and 35 percent market share.
Mr Khammouane said the BCEL-KT securities company will act as underwriter for the ETL share offering.
The government will sell 30 percent of its holding in ETL through the IPO, with 5 percent to be reserved for company employees, 15 percent for local investors and 10 percent for foreign investors, with the government to retain the remaining shares.
About 23 million ETL shares will be on offer at an unofficial price of 4,500 kip per share.
Mr Khammouane said the company would use the funds raised through the IPO to expand its business so it can attract more customers.
He said about 70 percent of the company's revenue come s from monthly mobile phone subscriptions, with the remainder sourced mostly from home phone and international connection services. ETL is eyeing a net profit of about 40 billion kip in 2011, he added.
vientiane times
