Robi seeks BSEC nod to revise IPO fund utilisation plan

This article was originally published on this site

Robi Axiata Limited, the country’s second largest telecommunication operator and a newly listed company on stock exchanges, has urged the Bangladesh Securities and Exchange Commission to allow it to revise its plan for the utilisation of initial public offering proceeds.

On August 16, the company sent a letter to the BSEC for approval for an amendment to IPO utilisation, extension of time of IPO fund utilisation and waiver from condition in IPO consent letter.

Out of the Tk 523.79 crore of IPO proceeds, the company has utilised Tk 355.76 crore in network expansion and Tk 7.39 crore in IPO expenses, and the amount is 69 per cent of total IPO proceeds, according to the letter to the BSEC.

As per the IPO prospectus, the company intended to utilise Tk 515.77 crore in network expansion and Tk 8.02 crore in IPO related expenses.

According to the letter, Robi requested the BSEC to extend the timeframe for the utilisation of IPO proceeds till June 30, 2022.

The company was supposed to utilise the proceeds within six months of obtaining IPO funds as per IPO prospectus.

In the letter, it also sought permission to procure extra quality of telecom equivalent in the same/relevant/others line items with the remaining proceeds owing to cost savings, lower forex settlements rate.

The operator also wanted to use of any remaining amount in any cost line items owing to change in dynamic network planning in other/relevant cost line items.

In addition, it requested the BSEC to permit it for utilisation of any residual amount from IPO general expenses in network expansion line items.

Moreover, Robi urged the regulator to give waiver from rules regarding prior approval from 51 per cent of the public shareholders other than sponsors and directors, the letter said.

BSEC officials said that the commission was working on the issue and if the company was given permission to revise the plan, it must call a general meeting to take consent from shareholders.

Asked, Robi declined to make any comments on the issue.

Earlier on September 23, the BSEC approved Tk 523.79-crore (52.37 crore shares) IPO proposal of Robi Axiata and the company eventually commenced share trading on December 24, 2020.

More about: