Move of first private mobile operator interpreted as a part of company’s plan to float shares to public
KATHMANDU, Aug 5: Ncell has converted itself into a public company from a private limited company, indicating a plan of the mobile service provider to issue its share to the general public.
The company has also been renamed ‘Ncell Axiata Ltd’. Earlier, it was registered as ‘Ncell Pvt Ltd’.
However, Ncell has not yet made its intention clear on whether it wants to float its shares to the public.
Issuing a notice on Wednesday, the first private mobile operator said that it was renamed ‘Ncell Axiata Ltd’ and got transformed into the public company following a decision of the Office of Company Registrar on Monday.
The company did not respond to a request for its comment about the plan of public offering.
The company now has the name of its parent company Axiata in its title.
Earlier in 2016, Axiata Group, a leading Asian telecommunication group headquartered in Malaysia, acquired Ncell from TeliaSonera and Reynolds Holdings Ltd at a price of $1.365 billion. The deal secured Axiata an 80 percent equity interest and controlling stake in Ncell. Ncell’s parent company Axiata is a multinational telecommunications conglomerate listed in Malaysian stock exchange.
The Ncell’s decision to convert itself into a public company has been interpreted as an indication of the company’s plan to offer its shares to the public and list them in the secondary market for the trading.
Even Nepal Telecommunication Authority—the regulatory body of mobile service providers—has been prodding telecommunication companies to go public. “We have already issued a circular to our licensed service providers to offer their shares to the public,” Min Prasad Aryal, the NTA Spokesperson, told Republica. “Some are already in the process to go public,” he added. He, however, did not share details about which companies have started the public offering process.
Ncell’s rival, Nepal Telecom (Nepal Doorsanchar Company Ltd), is already listed at Nepal Stock Exchange (Nepse)—the sole stock exchange of the country.