Financial Times

Dialog Telekom share subscription opens July 7
The Colombo Stock Exchange has approved a main board listing of 7.4 billion Dialog Telekom shares with a par value of one rupee each.
The subscription list will be opened on July 7.

The company, formerly MTN Networks Pvt Ltd., recently announced a net profit of Rs. 4.1 billion for 2004, making it the most profitable company in the country. It is briefing the media tomorrow on the IPO issue.Brokers SC Securities said the Dialog issue will come at a price range of Rs.8–12 per share.

Dialog is hoping to raise Rs 8.54 billion from the IPO, they said.
Dialog made Rs.1.7 billion profits for the first quarter of this financial year and the profit forecast for year 2005 will be around Rs 5.5 – 6.1 billion, SC Securities said. The company has a market share of around 60 percent and a customer base of 1.5 million. “The firm made average profits of Rs 600 million per month and at present it makes Rs 450 per Dialog mobile user,” the brokers said.

They said the firm believes the cellular market in Sri Lanka is expected to grow up to six million subscribers by 2008 which means that if the company maintains its 60 percent market share it would have a subscriber base of 3.6 million. “One should keep in mind that it has a 30 percent return on equity with less debt.”

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