The proceeds from the proposed listing will be used to fund Robi's capital expenditures
Robi, the second largest mobile operator in Bangladesh, is seeking to raise Tk523.80 crore from the capital market through an initial public offering (IPO).
At its board meeting in Kuala Lumpur, Robi's parent company Axiata Group Berhad made the decision on Thursday, as reported by Bernama.
It plans to offload about 523,800,000 shares at Tk10 each on the Dhaka and Chittagong stock exchanges, Axiata announced in a filing with the Malaysian stock exchange on Friday.
The proceeds from the proposed listing will be used to fund Robi's capital expenditures, according to Axiata.
The move will also provide an opportunity for Bangladeshi and global investors, including eligible directors and employees of Robi, to become its shareholders and participate in the future performance of the firm by way of direct equity participation.
Robi has appointed IDLC Investments Ltd as the issue manager for the IPO but so far they have not applied for listing.
The process of listing and IPO is expected to be completed by the fourth quarter of 2020, Axiata said.
Robi's subscriber base currently stands at 46.9 million, representing 29.9% of the subscriber market share. The Malaysia-based Axiata owns a 68.9% stake in the mobile network operator.