Sri Lanka`s largest ever IPO ? the much-anticipated Dialog Telekom Limited Initial Public Offer was over-subscribed approximately 1 hour after its opening on the morning of 7th July 2005.
At 10.07 am on the day of the opening Registrars to the issue, SSP Corporate Services released a statement to the Colombo Stock Exchange (CSE) confirming the over-subscription of the issue. In line with prevailing regulations, the issue was closed at 4.30pm on the same day signaling the successful completion of Sri Lanka`s largest Initial Public Offering.
The Registrars to the issue are expected to provide confirmation pertaining to the level of over-subscription over the next days following the validation and entry of all applications for subscription which were submitted by throngs of eager investors late in to the afternoon. As of 3.00pm, it was estimated that over 25,000 applications had been received, with public response expected to break all records by the closure of the offer at 4.30 pm.
Dialog Telekom Confirmed that the offer had attracted unprecedented demand from foreign investors ? the foreign investor subscriptions alone are expected to drive over-subscription levels well in excess of 3 times.
The issue consisted of 712,336,293 Ordinary Shares of par value of Rs.1/- each offered at the Share Offer Price, which would be determined through a book building process based on price range of Rs. 8.0 ? 12.0 in steps of Rs 1/-. Investors were invited to bid at an offer price of their choice within the specified range.
In June this year Telekom Malaysia Chairman Tan Sri Dato Ir Mohd Radzi Mansor, who is also Chairman of Dialog Telekom stated that the primary objective of the Dialog Telekom Listing was to create an opportunity for Sri Lankan public ownership in the company. Echoing this sentiment at the time Dialog Telekom Chief Executive Dr Hans Wijayasuriya noted that the success of the Company and the Dialog brand name belonged to the Sri Lankan public. `It is therefore logical and timely that public ownership is added to Dialog`s formula of success,` he said.
Judging by the unmitigated success of the issue ? it is clear that investors supported this view and were happy to place their trust in Dialog Telekom Limited. Expressing his delight, company CEO Dr.Hans Wijayasuriya had this to say, `We are extremely honored by the tremendous response received from the public ? we would like to thank everybody who has placed their trust in us, and we will do our utmost to deliver on that trust as we go forward`.
Managers to the issue, NDB Investment Bank CEO Mr.Vajira Kulatilaka stated, `The response received is ample evidence of peoples` confidence in Dialog Telekom. But that`s not all ? we must also take note of the remarkable foreign participation in this issue ? this is a sign not just of faith and confidence in the company, but in the country as well. The success of this IPO is a positive sign for Sri Lanka.`
Dialog Telekom, Sri Lanka`s flagship Telecommunications Company operates Dialog GSM, the country`s largest mobile phone network, supporting the very latest in multimedia and mobile Internet services based on EDGE and GPRS technologies, and also provides International Roaming facilities in over 190 countries. Dialog Telekom provides the widest cellular coverage in the country, and serves over 1.5 Million customers from across all nine provinces of the island. The Company`s subscribed base accounts for (approximately) 60% of the country`s mobile sector and 40% of total telecommunication subscribers.