June 14, 2007 (LBO) – Sri Lanka’s biggest mobile phone company, Dialog Telekom, said Thursday its 15.5 billion rupee cash call had been fully subscribed. .
Corrected: Dialog’s parent Telekom Malaysia had bought in full its entitlement under the rights issue, spending 13 billion rupees, a company statement said.
The inward foreign currency remittances for the rights issue, the largest equity raising executed in the island’s capital market, have exceeded 130 million US dollars, it said.
“The Dialog Telekom rights issue attracted substantial interest from Dialog’s shareholders spanning foreign institutional, domestic institutional and domestic retail segments,” the statement said.
Dialog Telekom presently accounts for more than 22 percent of the market capitalisation of the Colombo Stock Exchange.
The rights issue will increase the tradable shares of Dialog by 10 per cent, enhancing the liquidity of the share in the market, the company said.
Part of the cash raised will be spent on expanding of network capacity and coverage and investments in new technologies.
The company is expanding its GSM and 3G mobile network