31 تشرين الأول 2010
Ooredoo Palestine Mobile Telecommunications Public Shareholding Company (’Ooredoo’ or the ’Company’), the second licensed mobile telecom company in Palestine, today announced its intention to undertake an Initial Public Offering (the ’IPO’) of 15 per cent of its shares followed by a listing on the Palestine Exchange (the ’PEX’) and has appointed HSBC Bank Middle East Limited as Sole Global Coordinator and Sole Bookrunner and Arab Bank Group as Regional Coordinator for the offering.
Offer details
• Offer period is from 7 November until 2 December 2010
• 38.7m new shares to be sold - no selldown by existing shareholders at the time of IPO
• Fixed offer price of US$1.30 per share
• IPO to raise US$50.3m
• Indicative market capitalisation of US$335.4m
• Retail investors in Palestine to subscribe at branches of HSBC, Arab Bank, Bank of Palestine, Palestine Commercial Bank, Palestine Islamic Bank, Qatar National Bank and Quds Bank
• All proceeds to be used for general business and operational purposes, and to assist the funding of the balance of fees payable under the Company’s operating licence
Commenting on the announcement, Dr. Mohammed Mustafa, Chairman of Ooredoo said:
’This IPO is an exciting milestone in our history - for us as a company and also for our community of customers. Since we launched in November 2009, we have built a strong, differentiated brand, and worked hard to give our customers a truly exceptional offering. This commitment is clearly demonstrated by our fast growing mobile customer base, which grew to over 302,000 subscribers by 30 September 2010. We are recognised as the fresh and innovative alternative in the buoyant Palestinian mobile market.’
Dr. Bassam Hannoun, Ooredoo’s Chief Executive Officer added: ’By offering our shares to the public, we are providing investors with the chance to actively participate in our future development, at what is an early stage in our history. We feel we have a very exciting time ahead, and look forward to welcoming new investors to join us as we continue to grow our community of customers in Palestine.’
Launched in November 2009, Ooredoo is the second mobile telecom company to have been licensed in Palestine, and currently covers 95% of the Palestinian population in the West Bank. Ooredoo aims to bring the latest mobile technologies and highest quality service to both individual and commercial customers in Palestine.
Track record of achievement
Ooredoo successfully launched operations within the West Bank on 1 November 2009, three years after winning a competitive bid for its licence. The licence authorises the Company to build and operate a GSM telecom network, and provide public mobile voice and data telecom services in the West Bank and Gaza. It also gives Ooredoo a four-year exclusivity period in which to establish and operate a 3G network, and to provide international telecom services through its own international gateway.
Rapidly growing subscriber base
Total subscriber figures reached 110,835 as at 31 December 2009, within just six weeks of launching operations, and have subsequently reached 302,404 subscribers as at 30 September 2010. This represents a mobile market share in the West Bank of approximately 19%.
Favourable telecoms market in Palestine
The Palestinian mobile market has an appealing market structure, with two licensed telecom operators, Ooredoo being the second and dynamic new entrant. The market also presents attractive fundamentals due to its young and growing, highly literate population, and low mobile penetration.
The population of Palestine stood at 3.9m individuals as at 31 December 2009 and is expected to continue to grow at a healthy compounded annual growth rate (CAGR) of 3.2% between 2009 and 2019. In addition, Palestine has attractive demographics, with approximately 52% of the population under the age of 19 (as at 31 December 2009), the highest proportion in the Middle East region. This is supported by one of the highest literacy rates in the Arab Middle East and North Africa region, with an adult literacy rate of 93% (Source: United Nations, 2009 World Almanac and the Economist).
Despite a rapid increase in mobile penetration rates, Palestine’s mobile penetration remained low at only 49% at the end of 2009. This currently constitutes one of the lowest penetration rates among other regional markets. For example, the mobile penetration rate was 101% in Jordan for the same period (Source: BofAML Wireless Matrix, Paltel annual report and Watanyia Mobile management estimate).
Plans to expand into Gaza
Ooredoo is licensed to operate in Gaza; however, due to the existing political situation the Company has not currently commenced operations there. The Company has started planning and preparations for building a network in Gaza, and the intention is to launch in Gaza as soon as practicable.
Advanced, custom built network
Ooredoo’s network was specifically designed and built by Ericsson to a specification particular to the Palestinian market, to provide a high quality of service to customers using the latest technology. This allows the Company to offer differentiated and more competitive products and tariffs. In addition to this high quality network, the Company has an advanced billing system, which interacts, and is customised to be compatible with, its bespoke network. The billing system enables a great degree of flexibility that means Ooredoo can better meet the needs of its customers.
Current shareholders
Ooredoo gains significant local and international advantages from its close relationships with its ultimate shareholders, Qtel and the Palestine Investment Fund (PIF).
Qtel is a leading operator in the Middle Eastern and Asian telecom markets. It offers Ooredoo access to international know-how, especially its experience in operating in other markets where the competitive position of its operating companies is similar. The Company also benefits from group synergies and access to Qtel’s key relationships with suppliers, vendors and financing banks. As at 30 September 2010, Qtel had over 68m customers across the 16 countries and territories in which it has telecom operations.
Qtel holds its interest in Ooredoo through a chain of subsidiary companies, which includes National Mobile Telecommunications Company (NMTC). NMTC is a leading international telecommunications company in its own right and is listed on the Kuwait Stock Exchange.
PIF is a US$850m investment fund and the largest investor in the Palestinian economy. PIF aims to develop the Palestinian economy through diversified strategic investments in vital economic sectors, such as telecommunications, energy, trade and industry, real estate, financial services and small and medium enterprises. With its strong presence in the Palestinian economy across multiple sectors, deep experience and knowledge of the local market, and a strong business network inside and outside Palestine, PIF is able to offer the Company invaluable local support.
Strong management team
The Company’s strong management team blends international and local experience, and includes expertise in managing new market entrants in the Middle East and other emerging markets.
Dr. Mohammed Mustafa, Chairman, is currently Chairman and Chief Executive Officer of PIF, and the Economic Adviser to the President, Mahmoud Abbas. Chief Executive Officer, Dr. Bassam Hannoun, has worked in both Europe and Jordan within market-leading telecoms companies including Marconi, Lucent Technologies, Orange and wi-tribe. Ooredoo’s Chief Financial Officer is Ausrius Banaitis, a financial professional with international experience in the telecom industry, including roles at Azerbaijani start-up mobile operator, Azerfon, and at Cable & Wireless in Asia Pacific.
Financial performance
As a young Company, Ooredoo’s financial performance is still evolving and the Company has enjoyed strong revenue growth. In the nine month period to 30 September 2010, the Company generated revenues of US$24.7m, while revenues for the third quarter of 2010 were US$11.55m compared to US$9.12m for the second quarter of the year.
Future growth plans
Ooredoo’s vision is to be the telecom provider of choice in Palestine by pursuing the following strategies:
• Maximise market share by emphasising competitive strengths - Ooredoo aims to increase its market share principally by offering its customers attractive, innovative, affordable and high quality telecom services. The Company seeks to provide reliable and high quality network services to all Palestinians across the country by providing tailored products and services to meet their specific needs.
• Continue to develop its network - Ooredoo will continually seek to maintain its technological edge by making investments in network upgrades and other infrastructure upgrades as necessary.
• Continue to increase brand awareness and build brand loyalty, including investing in corporate social responsibility programmes aimed at enhancing the welfare of the Palestinian people - Ooredoo will continue to reinforce the image of its brand as one that is associated with youthfulness, innovation and vitality. It will continue to engage in widespread advertising campaigns which build even greater recognition of its brand. In addition, the Company will continue to support corporate social responsibility programmes, both to give back to Palestinian communities and to build increased brand loyalty.
• Increase postpaid subscribers - The Company’s sales team will focus on building a larger subscriber base of postpaid customers.
• Expand distribution network - While Ooredoo currently has six distribution centres, it will seek to continue to establish more in the future. With respect to the Company’s indirect distribution strategy, it will increase the number of these relationships.
• Provide market leading customer care - Ooredoo focuses on four key elements of customer care: (i) quality of care, which emphasises high standards when interacting with customers, (ii) availability, based on operating call centres that are open 24 hours a day, seven days a week, (iii) efficiency, which revolves around the provision and delivery of the latest technologies, and (iv) credibility, which focuses on ensuring that all means of customer care are equally effective, thereby reinforcing consistency.
• Invest in customer loyalty and retention programmes - Ooredoo will invest in customer loyalty and retention programmes that will ensure that its customers’ service requirements are always met quickly and reliably. By offering flexible, simple packages and offers to target the different segments of the Palestinian market, Ooredoo intends to minimise churn.
Important Information
THIS PRESS RELEASE IS FOR INFORMATION ONLY AND DOES NOT CONSTITUTE EITHER AN INVITATION TO PARTICIPATE IN A PUBLIC OFFER OR A PUBLIC OFFER IN ANY TERRITORY. INFORMATION ABOUT Ooredoo, THE OFFER AND RELATED MATTERS TOGETHER WITH A SUBSCRIPTION FORM (A ’SUBSCRIPTION FORM’) CAN BE FOUND IN THE PROSPECTUS PREPARED BY Ooredoo (THE ’PROSPECTUS’) AND WHICH WILL BE AVAILABLE IN HARD COPY AT HSBC MIDDLE EAST LIMITED, ARAB BANK PLC, BANK OF PALESTINE, PALESTINE COMMERCIAL BANK, PALESTINE ISLAMIC BANK, QATAR NATIONAL BANK OR QUDS BANK BY 7 NOVEMBER 2010, OR ONLINE AT WWW.ooredoo.ps. POTENTIAL INVESTORS MUST CAREFULLY REVIEW THE INFORMATION CONTAINED IN THE PROSPECTUS IN ITS ENTIRETY BEFORE DECIDING TO INVEST IN Ooredoo SHARES. THE PROSPECTUS CONTAINS INFORMATION ABOUT Ooredoo’S BUSINESS, POTENTIAL RISKS OF INVESTING IN THE SHARES, SUBSCRIPTION PROCEDURES AS WELL AS A SUBSCRIPTION FORM. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU ARE RECOMMENDED TO SEEK YOUR OWN PERSONAL FINANCIAL AND LEGAL ADVICE.
THIS PRESS RELEASE IS NOT PROVIDED FOR CIRCULATION IN OR INTO, AND IS NOT DIRECTED AT PERSONS IN AUSTRALIA, CANADA, JAPAN, KUWAIT OR THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS) OR TO US PERSONS AS DEFINED IN REGULATION S UNDER THE US SECURITIES ACT OF 1933 (’US PERSONS’, ’REGULATION S’ AND THE ’SECURITIES ACT’). NOTHING IN THIS PRESS RELEASE CONSTITUTES AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY SHARES OR OTHER SECURITIES IN THE UNITED STATES OR IN ANY OTHER JURISDICTION. ANY SECURITIES TO BE OFFERED PURSUANT TO THE IPO HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT, OR WITH ANY SECURITIES REGULATORY AUTHORITY OF ANY STATE OF THE UNITED STATES OR ANY OTHER JURISDICTION OF THE UNITED STATES. THE SHARES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, US PERSONS EXCEPT TO A PERSON WHO IS NOT A US PERSON IN AN OFFSHORE TRANSACTION PURSUANT TO RULE 903 OR RULE 904 OF REGULATION S IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.
THIS PRESS RELEASE INCLUDES FORWARD-LOOKING STATEMENTS. THE WORDS ’ANTICIPATE’, ’BELIEVE’, ’EXPECT’, ’PLAN’, ’INTEND’, ’ESTIMATE’, ’PROJECT’, ’WILL’, ’WOULD’, ’MAY’, ’COULD’ AND SIMILAR EXPRESSIONS ARE INTENDED TO IDENTIFY FORWARD-LOOKING STATEMENTS. ALL STATEMENTS OTHER THAN STATEMENTS OF HISTORICAL FACT INCLUDED IN THIS PRESS RELEASE, INCLUDING, WITHOUT LIMITATION, THOSE REGARDING THE COMPANY’S FINANCIAL POSITION, BUSINESS STRATEGY, MANAGEMENT PLANS AND OBJECTIVES FOR FUTURE OPERATIONS, ARE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS, WHICH MAY CAUSE THE COMPANY’S ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS, OR INDUSTRY RESULTS, TO BE MATERIALLY DIFFERENT FROM THOSE EXPRESSED OR IMPLIED BY THESE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS REGARDING THE COMPANY’S PRESENT AND FUTURE BUSINESS STRATEGIES AND THE ENVIRONMENT IN WHICH THE COMPANY EXPECTS TO OPERATE IN THE FUTURE.
IMPORTANT FACTORS THAT COULD CAUSE THE COMPANY’S ACTUAL RESULTS, PERFORMANCE, OR ACHIEVEMENTS TO DIFFER MATERIALLY FROM THOSE IN THE FORWARD-LOOKING STATEMENTS INCLUDE, AMONG OTHER FACTORS REFERENCED IN THIS PRESS RELEASE OR THE PROSPECTUS, CHANGES IN THE ECONOMY, CHANGES IN THE COMPETITIVE LANDSCAPE, CHANGES IN LAWS, REGULATIONS AND TAX RATES, CHANGES IN THE COMPANY’S ABILITY TO MAINTAIN INVESTMENT COSTS AND EXPENSES WITHIN EXPECTATIONS, AND CHANGES IN THE COMPANY’S ABILITY TO ATTRACT AND RETAIN WELL-TRAINED AND EXPERIENCED MANAGERS TO HELP IT ACHIEVE ITS RESULTS.
THE OFFER HAS BEEN APPROVED BY THE PALESTINE CAPITAL MARKET AUTHORITY ON ORDER CMA/ DF / 130 / 2010 on 28/10/2010.
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For further information, please contact:
Ooredoo
Mr. Mohammad Nassar
PR Manager
Phone: +970 256 856 0096
mohammad.nassar@ooredoo.ps
HSBC Middle East Limited
Mr. Michael Bevan
Director and Head of MENA Equity Capital Markets
Phone: +971 504 526 903
michael.bevan@hsbcib.com
AB Invest Palestine (Arab Bank Group)
Mr. Khaled Hamdan
General Manager
khaled.hamdan@arabbank.ps
Mr. Abed Tutunji
Deputy General Manager
abed.tutunji@arabbank.ps
Phone: +970 2 298 0240
Capital MS&L - Media Enquiries
Nick Bastin, Director
Phone: +44 7931 500 066
nick.bastin@capitalmsl.com
Anna Watson, Associate Director
Phone: +44 7908 463 062
anna.watson@capitalmsl.com
Tom Fraser, Account Director
Phone: +44 20 7307 5338
tom.fraser@capitalmsl.com