Starcomms and Reltel Wireless, two of Nigeria’s triple-play" (mobile, fixed wireless voice, wireless broadband) providers are to be listed on the Nigerian Stock Exchange (NSE) by the last quarter of this year, CommunicationsWeek investigations has revealed.
Ahead of the planned listing the two companies who are running neck and neck in the Code Division Multiple Access (CDMA) market are shopping for $520 million by private placement for network expansion and enhancement of their services.
Private placements are privately offered and are restricted to qualified individuals, which typically mean individuals with certain net worth.
But with the listing on the main board of the NSE, ordinary investors would be able to own part of the largely lucrative telecom business.
gathered that Starcomms is out to raise N30billion for network expansion and improvement of the quality of its services.
Starcomms, expects to raise N22.8 billion of the total sum in Nigeria, while the remainder would be raised outside Nigeria.
The private placement would be carried out utilising the concept of "book running" whereby prospective investors would state the volume of shares they desire, and at what price per share.
With a little over a million subscribers, Starcomms is a market leader. It commercially launched in 1999 and has invested heavily over the years to improve the quality of its products.
Starcomms’ closest rival, Reltel, is also raising N30 billion to drive its nationwide expansion plans across 51 cities in the country.
Reltel reputed for improved services, said that 100 percent of the money raised will be invested in the company and that the company will be listed on the Nigerian Stock Exchange before the end of the year.
Reltel which is set to relaunch its brand cuurently operate across seventeen cities in the federation including Lagos, Onitsha , Port-Harcourt, Abuja , Aba , Owerri, Umuahia, Enugu , Ibadan , Nnewi, Asaba, Awka.
CommunicationsWeek
