News Title : ADN Telecom IPO prospectus awaits BSEC nod

News Date : 2015-11-03

-Ishtiaq Husain
ADN Telecom Limited, a IT service provider, is going to float shares in the stock market to raise fund for expansion of its network across the country and introducing cloud data services. The company’s proposal has already been approved by the Bangladesh Telecommunication Regulatory Commission (BTRC). The Initial Public Offering prospectus has also been placed for clearance of the Bangladesh Securities and Exchange Commission (BSEC). According to the IPO prospectus, the company will offload 17m ordinary shares worth Tk10 each and has sought a premium of Tk30 per share to offer at Tk40 each. As per the latest financial statement of the company, earning per share (EPS) is Tk3.15 and the net asset value (NAV) is Tk22, while the paid-up capital is Tk30 crore. “ADN Telecom will invest the proceeds from IPO in launching cloud data services to capture the emerging business of data storage in Bangladesh,” Asif Mahmood, chairman of ADN Telecom, told the Dhaka Tribune. “If any company can tap the market with proper business strategies, it will be possible to grab local TK50 crore business of cloud data services.” Mahmood lamented that most of the business owners now have to send money abroad to avail of the services, as Bangladesh doesn’t have such type of services. “At present, 80% companies are hosting their websites by the foreign companies, which costs foreign currencies,” he said. Industry insiders say as most of the Singaporean companies now charge $5,000 for cloud hosting in each rack with power, Bangladeshi companies can also make profits providing the same services at $3,000. “Due to cheap labour, Bangladeshi companies will be able to provide those services at affordable prices compared with other countries,” said ADN Telecom chairman. According to the BTRC, Bangladesh currently has one submarine cable company and six ITC (international terrestrial cable) operators. Officials say the government has a plan to set up another submarine cable company by 2016. “If another submarine cable company is launched in Bangladesh, more cloud data services will be needed,” Asif Mahmood said. “We have multiple connectivity, despite we want to connect our cloud data services with global data services so that global companies can easily get our services.” ADN Telecom started its journey in 2003 as Advanced Data Networks System Ltd., and within a short span of time, became a dominant market player by providing seamless and secured connectivity. Presently, the company offers a wide range of internet, data and voice communication services to its clients, both in home and abroad. BTRC has awarded ADN with a number of licenses, such as, Nationwide Internet Service Provider, Nationwide IP Telephony Service Provider and VSAT Provider with Hub License.

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