Ncell begins preparation to launch IPO

KATHMANDU, March 18:

Ncell has started a study to launch initial public offering (IPO).

A high-level committee of TeliaSonera -- the parent company of Ncell -- visited Nepal lost month to conduct detailed study on issuing shares to general public. The team visited Securities Board of Nepal (SEBON), the stock market regulator -- to find out how Ncell can move ahead on the issue.

"Representatives of TeliaSonera have been in Nepal to thoroughly investigate the conditions for an IPO. We have been open to consider IPO of a part of the shares in Ncell. President and CEO of TeliaSonera Johan Dennelind also had expressed his openness to consider IPO when he was in Nepal last year," Erim Taylanlar, CEO of Ncell, told Republica. "We believe listing provides value additions to the investors and also contribute to advancement of Nepali stock market. Against this backdrop, the visit by the representatives of TeliaSonera and interactions with concerned authority was the natural next move."

He, however, added that no decision of any sort had been made yet. "At this stage, it is about fact finding to better understand the market and the requirements," added Taylanlar.

Salomon Bekele, senior advisor, CEO office; Mathias Holcke, director; and Ola Espelund, group legal counsel, merger and acquisitions and finance from TeliaSonera were in Nepal to study about the possibility of issuing public shares.

Niraj Giri, director of SEBON, said TeliaSonera officials discussed about the possibility of dual listing. "Even though Ncell has shown its interest in issuing public shares in Nepal, it has shown more interest in dual listing in Nepal as well as outside Nepal," Giri said, adding that they asked us detailed information about dual listing -- one in Nepali stock market and another in international stock market.

"As there is no provision of dual listing in Nepal, we told them that it is only possible when the provision is made here in Nepal," added Giri.

A taskforce formed by Nepal Telecommunications (NTA) under the leadership of Bhaskar Mani Gyawali, the then executive director of NRB, to study crossholdings has recommended creating a legal provision in the Telecommunications Act for private telecom companies to become public companies within five years once the crossholding guidelines is finalized and implemented.

The taskforce has also recommended to the government to implement the rule that prevents single person or a company to hold more than 51 percent of shares in local telecommunication companies.

At present only Nepal Telecom, a state owned company, is a public company. Other telecom operators are privately owned companies.

Source: Republica