Financial Times

Dialog IPO confirmed by parent firm
The Telekom Malaysia board has approved the proposed listing on the Colombo Stock Exchange of its wholly owned mobile phone operator, MTN Networks with the Dialog brand.

Analysts said the company, better known as Dialog, with 1.4 million mobile phone subscribers and 55 percent of the market, plans to offer 20 percent of its 37 million shares to the public to raise Rs 4 billion.

In a statement released last Wednesday the Malaysian company said the listing will enable MTN Networks to raise equity funds for future expansion and growth.

The company does not need the cash since its capital structure is healthy, but IPO revenue will be routed to the company's operations, particularly for introducing new technology to the Sri Lankan market. The Malaysian state-owned telecom company's decision to list Dialog was first reported in The Sunday Times FT on March 13.

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