Robi’s share trading debut on Thursday

KEY POINTS

• DSE trading code is 'ROBI' and DSE company code is 27003
• Robi intends to raise Tk524 crore through IPO
• Tk388 crore to be taken from external investors
• Tk136 crore from Robi employees under ESPP
• 40% of Tk388 crore to be collected from eligible institutional investors
  

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The country's second largest telecom company, Robi Axiata Limited, will commence its share trading at the Dhaka Stock Exchange (DSE) from Thursday (24 December) under the 'N' category.

The DSE trading code for the company is 'ROBI' and the DSE company code is 27003.

The company is selling primary shares at a face value of Tk10 each to raise a total of Tk524 crore through the Initial Public Offering (IPO). Of the amount, Tk388 crore is being taken from external investors, while Tk136 crore from its own employees under the Employee Stock Purchase Plan (ESPP).

A total of Tk155 crore or 40% of the amount slated to raise from external investors, is being collected from eligible institutional investors.

It is the largest ever IPO company in the country's stock market history.

During the event on IPO lottery, Robi's Chief Executive Officer Mahtab Uddin Ahmed thanked investors for their interest in the company's shares and acknowledged capital market stakeholders for their support.

At the event, he reiterated his demand to the government to rationalise the existing taxes that are eating away most of the profits they earned.

Before filing for IPO, Robi requested for a relief from the provision of 2% minimum tax on turnover, and also to widen the corporate tax benefit to 10% from the existing 5%.

Mahtab Uddin further said the minimum tax on turnover translates into 77% effective tax for Robi, which is 40% for its key market competitor Grameenphone. When the company was listed more than a decade ago, it received a 10% corporate tax benefit.

If Robi's demands are fulfilled, the company could generate a good return for its shareholders, he added.

Meanwhile, the company reported a 33% decline in net profit in the third quarter of 2020 compared to the previous quarter same year.

However, the operator registered a 9.7% revenue growth during that time.

Robi claimed that the profit figure would have looked far more appealing if it had not paid a 77.06% effective tax rate with the 2% minimum turnover tax during the time.

During the press meet, Robi officials said the operator ended the third quarter of this year with a profit of Tk38.9 crore, while its revenue for the time reached Tk1,934 crore.

In the first nine months (January-September) of this year, the company's total revenue reached Tk5,644 crore, 1% up compared to the same period of last year.

Robi has 30% of the country's total mobile subscribers.