The New Nation - Internet Edition

bdnews24.com, Dhaka

The Securities and Exchange Commission has asked Warid Telecom to issue shares to the public within three years of starting its commercial operation, an official said.

The regulator slapped the condition after the subsidiary of the UAE-based Abu Dhabi Group sought more time to convert itself into a public limited company (PLC).

The SEC gave Warid two years to become a PLC.

Under SEC rule, a company needs to convert itself to a public limited company if its paid-up capital exceeds Tk 400 million.

The rule also allows the stock market regulator to ask companies to go public if their paid-up capital tops Tk 500 million.

Warid has, according to SEC, a paid-up capital of Tk 11.20 billion with a face value of Tk 100 each share.

"We have imposed the condition on Warid under a section of SEC ordinance 1969," an SEC official, who preferred not to be named, last week told bdnews24.com.

The SEC in a leter to Warid said: "Warid Telecom International Ltd shall issue its shares to the public within three years of commencement of its commercial operation."

Zeeshan Kingshuk Huq, Warid's senior manager, marketing, said they made foray into Bangladesh market less than four months ago and would ensure "sustainable benefits to potential investors" before going public.

"It is, therefore, too early to make a comment on our public offering plans," he said. Warid, the sixth cellphone operator in Bangladesh, started commercial operation on May 10.

It obtained a 15-year GSM license from Bangladesh Telecommunication Regulatory Commission in December 2005 paying $50 million as fee.