Home / Oger Telecom withdraws IPO

Oger Telecom withdraws IPO

The telco had hoped to raise US$1.25 billion through the IPO and list on the London Stock Exchange as well as the Dubai International Financial Exchange, with an offer price ranging from US$1.15 to US$1.42 per share and US$11.50 to US$14.20 per global depositary receipt.

Oger Telecom, the telecommunications division of Saudi Oger, has decided to abandon plans for an initial public offering (IPO).

The telco had hoped to raise US$1.25 billion through the IPO and list on the London Stock Exchange as well as the Dubai International Financial Exchange, with an offer price ranging from US$1.15 to US$1.42 per share and US$11.50 to US$14.20 per global depositary receipt. According to Oger the IPO was oversubscribed throughout the price range, but the market conditions were not right.

"In the light of increasingly challenging and volatile regional market conditions, the company and principal selling shareholders deemed that it was no longer advisable to proceed," read an Oger Telecom statement.

Riyadh-based Saudi Oger bought a 55% stake in Turk Telecom last year. The telco also controls the third mobile operator in South Africa, Cell C, and owns a stake in Inquam, an investment vehicle that seeks opportunities to develop and invest in CDMA networks. Through Inquam, Oger has communications interests in Romania and Portugal.

Oger’s revenues for 2005 reached US$7 billion, with an EBIDTA of US$3 billion. The telco had planned to fund obligations of its subsidiaries with the proceeds of the IPO.

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