Strong demand from domestic investors, both individual and institutional, has enabled the government to declare its initial public offering (IPO) of shares in Jordan Telecomto be a success, even though not all the shares on offer were sold.
The government said on 30 October that it has sold 26.25 million shares at JD 2.35 ($3.3) a share, representing 10.5 per cent of the company and netting JD 61.7 million ($87 million) for the treasury.
At launch, 37.5 million shares - 15 per cent of the company - had been offered at JD 2.3-2.7 ($3.3-3.8) a share.
The IPO was well received by the Jordanian public, with some 10,000 individuals signing up for the deal. They ended up with an allocation of 8.8 million shares.
The remaining 17.45 million shares were allocated to institutions, with local entities accounting for 85 per cent of this segment of investors.
'We are particularly delighted with the extent and strength of the domestic institutional and public participation,' said Finance Minister Michel Marto. 'This marks a major milestone in the mobilisation of our domestic capital base and in broadening the investor base of the Amman Stock Exchange.' He said that the offering had succeeded despite the weakness of the global telecom sector and the tense regional political situation.
JP Morgan Securitiesacted as the global co-ordinator and bookrunner. Arab Bankand Arab Jordan Investment Bankwere joint domestic lead managers of the IPO.
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