The Jordanian government has announced the price range for the planned initial public offering (IPO) of shares in Jordan Telecom, the kingdom's principal provider of telecommunication services. The Government is selling 37,500,000 shares in Jordan Telecom, representing 15 percent of the company's issued share capital.
The price range for the initial public offering has been set at between 2.30 Jordanian Dinars and JD2.70 per share. The final offer price will be determined through a book-built tender process with institutional investors.
Subscriptions in the Jordanian public offer will initially be based on a maximum offer price of JD 2.70 per share. However, if the final offer price is determined at a level below the maximum offer price, the difference will be returned to subscribers in the form of additional shares and/or cash.
The offering consists of a public offering in Jordan and a private offering to both Jordanian and international institutional investors. As part of the offer process, Jordan Telecom will be making an application to have its shares listed on the Amman Stock Exchange (ASE).
Jordan Telecom paid out a dividend of JD0.148 per share for the 2001 fiscal year. At the maximum offer price. “The 2001 dividend pay out places the shares on a historic dividend yield of 5.5 percent, which compares very favorably to the rates of interest obtainable for bank deposits,” stated Michel Marto on behalf of the Jordanian government.
“This makes the Jordan Telecom shares an attractive investment opportunity, not only for domestic and international institutional investors, but particularly for the Jordanian public,’ he added. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
