The WorldCALL Broadband first public issue of Rs 300 million shares was oversubscribed almost six-fold, according to the provisional figures received from their co-arrangers and underwriters.
The subscription was opened from January 7 to 8, first company to be listed, offering superior quality cable TV transmission and high-speed Internet service.
The company's first public invitation for subscription was for 30 million shares, which was hugely oversubscribed.
Till Monday, some 57,400 applications were received, fetching Rs 1.75 billion for an issue of Rs 300 million.
It is expected that the total figure would reach 60,000 applications. Even if all the 57,400 applicants were given 500 shares, the total amount would be Rs 287 million. It should be remembered that out of the Rs 300 million, Rs 15 million was allocated to the employees. Consequently, traders expect balloting to take place even for the minimum 500 share applications.
The total cost of the project is Rs 1.5 billion that is predominantly financed through equity injection by the Sponsors-WorldCALL Communications and First Capital to around 37 percent or Rs 560 million.
Foreign investors Sheikh Sulaiman Hoqqani and others 31 percent or Rs 469 million, and financial institutions, and private investors such as United Bank Ltd, AKD Securities, Elixir Securities, Saudi Pak Industrial & Agricultural Investment Co, Saudi Pak Leasing and others 12 percent or Rs 170 million.
The company is setting up a hybrid fibre co-axial network (HFC network) in Karachi.
The main objective is to provide superior quality cable TV and high-speed Internet accesses.
In addition, the network is capable of providing value-added services, including data communication network services, voice over Internet protocol (VOIP), video-on-demand, pay-per-view, security services, advertisement, store and forward fax services etc, subject to respective licences terms and conditions and related laws in force from time to time where necessary.
The company's project for developing HFC network covers 200,000 houses in the high-income residential and commercial areas of Karachi.
The areas, which will be covered, will comprise DHA, Clifton, I.I. Chundrigar Road, Saddar, Garden, PECHS, Sharea Faisal, SMCHS, MACHS, KDA and surrounding areas.
The company has already started providing its premium service to cover 5,400 cable TV subscribers and over 1,500 internet cable subscribers in areas of DHA and Clifton.