By Chester Tay
Axiata Group is planning to hold an initial public offering of its 68.7%-owned unit Robi Axiata in Bangladesh, the Malaysian telecom said Friday.
Robi will issue 523.8 million new shares, representing 10% of its enlarged share capital post-listing, raising 255.2 million ringgit ($61 million), which mainly to be utilized for network expansion, Axiata said.
Axiata's shareholding in Robi will be diluted by 6.9% and it will maintain its position as controlling shareholder.
Robi's other shareholders are Bharti International (Singapore) Pte. with a 25% stake and NTT Docomo with 6.31% stake.
CIMB Investment Bank Bhd. has been appointed as adviser for the IPO. IDLC Investments has been appointed by Robi as the issue manager for the proposals.
Axiata expects to complete the transaction by the fourth quarter.
Write to Chester Tay at firstname.lastname@example.org