KARACHI, April 7 Wateen Telecom Limited — the technology arm of the giant Abu Dhabi group — would begin provisional trading at the stock exchanges from Thursday.

The company plans to make an Initial Public Offering (IPO) worth a total Rs2 billion.

Analysts commented that Wateen already has diversified interest in various sectors in the Pakistan economy, including banking (Bank Al-Falah); insurance, real estate and asset management.

At an analysts briefing followed by a press conference on Wednesday, the company management stated that the IPO would be of Rs1.1 billion with the green shoe option of Rs900 million. The stock will be offered at Rs10 per share.

Analysts attributed the significance of the Wateen offer in it being the first major entry of a technology company in the capital market after many years.

“The technology sector will find the needed depth with the listing of the company,” says Sajid Bhanji, VP at Arif Habib Limited.

He affirmed that foreign fund managers had often complained of lack of investment opportunities in the technology sector and the offer of shares would go to satiate their appetite to some extent.

Meanwhile, a Karachi Stock Exchange notice stated that the bourse had “approved the provisional listing and quotation of shares of the company consequent upon the approval of prospectus and completion of relevant requirements under the listing regulations of the Exchange.”

It said that the provisional listing would take place from Thursday (April 8) in accordance with the Regulations for Futures Trading in the Provisionally Listed companies (FTPLC) rules, 2002.

The KSE stated that the company was proposed to be formally listed from May 27 (Thursday).

Some of the prominent financial institutions have underwritten the IPO offer. Analysts pointed out that since the upper and lower 'circuit breaker' rule (maximum permitted rise or fall in price of a stock) of 5 per cent is not applicable on the first day of trading, the trading pattern and investor interest in the scrip on Thursday, would enable 'price discovery' and possibly give a clue to the potential interest of investing public in the telecom company.