Grameenphone delays IPO due to market turmoil

OSLO, Oct 29 (Reuters) - Bangladesh's top cellphone carrier Grameenphone, 62 percent owned by Norwegian telecoms group Telenor (TEL.OL: Quote, Profile, Research, Stock Buzz), said on Wednesday that it would delay its initial public offering (IPO) due to financial market turmoil.

 

"Grameenphone's IPO process remains on track albeit delayed due to the ongoing global financial crisis and other challenges," Grameenphone said in a statement.

 

Grameenphone is planning to make a final submission of an application to the Bangladesh Securities and Exchange Commission (SEC) by the fourth quarter 2008, it said.

 

"The shareholders remain committed to listing Grameenphone shares in the local capital market," Chief Executive Anders Jensen said in a statement.

 

"We are now preparing to submit a fresh application, carefully following the global financial development with a focus on avoiding volatility in the local capital market given the size of the Grameenphone IPO."

 

Grameenphone extended in late September the period for a private placement offering before the planned IPO.

 

Earlier in October, a person familiar with the matter said Grameenphone would cut the size of its planned share sale by more than half, to $125 million from $300 million, amid the sharp downturn in global markets. (Reporting by Aasa Christine Stoltz; Editing by Quentin Bryar)