19 Feb ADN Telecom, SEAF Bangladesh Ventures Portfolio Company, Begins Trading on Bangladesh Stock Market
ADN Telecom Ltd., a portfolio company of SEAF Bangladesh Ventures LLC, made its debut trading on Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on the 6th of January 2020. The company raised BDT 570 Mn ($6.7 Mn) from the public market in the months leading up to this IPO. book building process.
The electronic bidding under the book building system was completed in November 2018 and the IPO price was set at BDT 27 per share. The IPO proceeds will be used to develop new infrastructures, set up data center and repayment of bank loans.
ADN Telecom, incorporated in 2003, is one of the leading IT and telecommunication service providers in Bangladesh. It offers a wide variety of data, voice, and internet services in both domestic and foreign markets. ADN, through disruptive technology and innovation, has established a diverse access network in the country by wireless, fiber optic, and satellite infrastructures and also provides capabilities that allow for the allocation of numerous radio frequencies, each having different bands to access and transmit to networks. The company uses these capabilities to deploy nationwide updated wireless technologies and broadband services. The company has alliances with many global companies like SingTel, TATA, Bharti Airtel and Sri Lanka Telecom.
“After successful completion of IPO, ADN Telecom stock is trading in the bourses of Bangladesh. The participation in IPO subscription from institutions and general public with more than 12x oversubscription proves strong confidence in our company,” stated ADN Telecom Chairman Asif Mahmood. “ADN Telecom is a company compliant with international technology standards. The addition of our company in the stock market will increase the number of technology companies and will help strengthen the breadth of the market.”
As the per the audited June-end FY2019 financial report, the revenue of the company was BDT 1,016 Mn ($ 12 Mn), Net profit was BDT 127 Mn ($1.5 Mn) and Net Asset Value (NAV) stood at BDT 14.6 per share (considering post-IPO number of shares).
SEAF Bangladesh Ventures invested $500,000 in ordinary shares of ADN Telecom in April 2013. Since SEAF’s investment, revenues of the company increased by 2.6x and the number of employees doubled at the end of FY2019.
SEAF is a global fund management company headquartered in Washington, DC that invests in small and medium-sized enterprises in emerging and frontier markets. SEAF seeks financial returns as well as impact on economic and social development and provides technical assistance to improve the performance of the enterprises. SEAF, with committed capital of $1.2 billion, has 30 years of experience with 40 funds in over 30 countries. SEAF also supports 11 Centers for Entrepreneurship and Development (CEED) around the world (www.ceed-global.org), providing training, mentoring, professional networks and global access to entrepreneur-run businesses. For more about SEAF, see www.seaf.com. ###
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