Fwd: Wateen Telecom IPO - An Opportunity for Investment

[Tee Emm]

FYI.

P.S: No, this email is not from Maryam Abacha of Nigeria :)

---------- Forwarded message ----------
From: Furqan Qureshi/Enterprise & Carrier Sales/Lahore <Furqan....@wateen.com>
Date: Mon, Apr 19, 2010 at 11:39 AM
Subject: Wateen Telecom IPO - An Opportunity for Investment
To:

Dear Madam/Sir,

 

We are going public. Our Initial Public Offering – IPO is scheduled for April 20^th and 21^st, 2010. With 110 million shares on the offer and an additional 90 million shares under the Green-Shoe option, this is a golden opportunity for you to invest in a blue chip company. Wateen Telecom (WTCL) will be listed at the Karachi Stock Exchange (KSE), Lahore Stock Exchange (LSE) and Islamabad Stock Exchange (ISE).

 

Wateen is a telecommunication infrastructure services company that carries digital data and information across the country and abroad via its nationwide 10,000km optical fiber network, and its Satellite (VSAT) and WiMAX broadband networks. As an example, when you make a phone call from your mobile phone or are using an ATM to withdraw cash or using the Internet from anywhere in Pakistan, it is highly likely you are using the Wateen network. Because all mobile phone companies use the Wateen network and so do 27 of the 35 commercial banks in Pakistan, likewise everyday 65% of the broadband wireless internet users in the country log on to Wateen’s network.

 

Established in 2005, Wateen has been the fastest growing company in the telecom industry in Pakistan starting with revenue of PKR 2.2 billion n 2005 and reaching PKR 16.1 billion in 2009. Cumulative Average Growth Rate during the four year period has been over 80% delivering profits ranging between 18% to 22% during this period. Wateen occupies a market share in excess of 60% in the satellite business, 65% share of the wireless broadband market i.e. 35% of the overall broadband market, and is the second largest Long Distance & International (LDI) operator in the country. Wateen is the only telecom company in the country offering Telecom-IT Systems Integration services including Hosted Data Centre Services and Hosted Contact Centre services. Supported by a diverse product portfolio, a robust infrastructure, and the best of the workforce in the industry – the FUTURE IS GREEN.

 

As more and more people use mobile phones and the internet in Pakistan, and more and more companies use information technology to run their businesses, Wateen revenues and profits will increase. As we reach out to neighboring countries of Afghanistan, India and China, Wateen will soon be commencing what is called the Afghan Digital Transit Trade (ADTT) by connecting its nationwide fiber. Phone calls to and from China, India, and Afghanistan will traverse the Wateen network adding to our revenues and profits and to your return on investment in Wateen shares. With an untapped market of 5 million broadband users, and the demand growing at over 40% per year, accompanied by our market diversification strategy, these opportunities augur very well for Wateen’s future growth.

 

That should help your decision to become the owner of shares in Wateen. You can buy Wateen shares in volume of 500 shares, 1,000 shares, 3,000 shares, 5,000 shares and multiple of 5,000 shares. Yet if you need more information, please click on the link below:

 

URL: www.wateen.com/IPO

 

You will find the Shares Application Form, Information Memorandum and other documents to help your decision. When you click on the above link, you will also find Analyst Reports who have concluded the share price to be in the range of Rs.15 to Rs.22. You can very well calculate your gains considering that the shares are being offered at PAR value i.e. Rs. 10 per Share ONLY.

 

I just wrote my cheque dated April 20, 2010 to become an owner of shares in Wateen. Join me as an investor. Let’s multiply our income!

 

Kind regards, Furqan

_____________________________________________________________________________________________________________

Furqan H. Qureshi| General Manager| Wateen Telecom Limited |GSM: +92 (321) 8293935 | Tel: +92 (21) 38005156    

Email:                    furqan....@wateen.com

URL:                        www.wateen.com

Portal:                   news.wateen.com | epaper.wateen.com | autos.wateen.com | games.wateen.com

Address:                6th Floor, Dawood Centre, M. T. Khan Road, Karachi, PAKISTAN

 

ps. In case you receive this email more than once, my apologies for the inadvertent error on my part.

 

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Manage your subscription: http://groups.google.com/group/telecom-grid-pakistan
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[Syed Obaid Nasir]

"Analyst Reports who have concluded the share price to be in the range
of Rs.15 to Rs.22"

Trading is starting at Rs. 10.00 and as per my information that it
touched high Rs 13.90 and a low of Rs 11.30 to register closing at Rs
11.39 per share.

Closing value doesn't seem to be a satisfying enogh for someone to
invest in these shares.


regards,
Obaid-

[Sheikh Usman N.]

Hi

I went through the docs that they've put on wateen.com/ipo and they just look so optimistic. There're two things which really turned me off in the estimations and projections. They are forecasting their revenue to increase by 80+% in 2011, which is very very aggressive, if not rubbish. They're not forecasting anywhere less than 20-30% revenue growth for next 5 years, and after 5 years they say their revenue will be 118 billion. 

Second thing, Wateen says it needs to pay off its debt + buy the remaining 49% shares of Wateen Solutions from Mr. Jehangir Ahmed. As per my information, Jehangir resigned from Wateen in December as GM Solutions and is now running his company called NETS International. There's a rumour in Wateen that Tariq Malik is also a shareholder in NETS International. Anyway, Jehangir has positioned NETS International to compete with Wateen Solutions, if you look at their website, they've a much better profile than Wateen Solutions. Wateen Solutions' big client was Zain Telecom, which has been bought out by Bharti, therefore no more work for Wateen Solutions from there too..

Wateen is very optimistic about its Solutions division, but looking at all this thing, there's no good reason they should be optimistic. 

I think they're not very open in all their forecasting.

Best Regards,

Usman.

On Mon, Apr 19, 2010 at 12:25 PM, Tee Emm <tariq....@gmail.com> wrote:

--
Sheikh Usman N.

"First they ignore you, then they laugh at you, then they fight with you, then you win"
-Gandhi

http://sms-wisdom.blogspot.com/

[Ahmed Afzal]

Is National Engineers (Wateen Solutions) really worth this much. Any idea of their current business portfolio.

Best regards,

Ahmed

[Sheikh Usman N.]

First thing is that those analysts are earning brokerage commission - so for them anything is good as long as IPO is successful. Second thing is what they're showing, the story they are wanting everyone to believe, it just doesn't make sense.

[Ammar Faheem]

As per Wateen's own presentation and forecasts, they expect an earning per share (EPS) of Rs. - 2.7 in the first year and finally a positive earning per share of Rs. 1.7 in 2011. So you can make out the decision from there.

 

If you're planning to invest long term and have no problem in having waiting for a couple of years to cash-in on the profits, go ahead!

--
Best Regards
Ammar Faheem
http://www.ammar360.com

[Sheikh Usman N.]

National Engineers (Pvt) Ltd is Wateen Solutions.

--
Sheikh Usman N.

"First they ignore you, then they laugh at you, then they fight with you, then you win"
-Gandhi

http://sms-wisdom.blogspot.com/

[Qasim Y. Khan]

The same was said by more than 8 KSE Members 3 weeks back, this launch is a hype to payoff a home created for double the price.

[Jamal Shamsi]

 

2 cents ...

 

after IPO, it will remain under Rs. 10.00

 

All else is FALSE projection,

 

JS

[Adnan Quddus Malik]

Does anyone has ideas about following claims;


• As an example, when you make a phone call from your mobile phone or

are using an ATM to withdraw cash or using the Internet from anywhere
in Pakistan, it is highly likely you are using the Wateen network.
• Because all mobile phone companies use the Wateen network and so do
27 of the 35 commercial banks in Pakistan,

• Likewise everyday 65% of the broadband wireless internet users in

the country log on to Wateen’s network.

• Wateen occupies a market share in excess of 60% in the satellite

business, 65% share of the wireless broadband market i.e. 35% of the

overall broadband market.
• Wateen is the only telecom company in the country offering Telecom-

IT Systems Integration services including Hosted Data Centre Services
and Hosted Contact Centre services.

• And so on…………..

On Apr 19, 2:53 pm, "Jamal Shamsi" <jamal.sha...@gmail.com> wrote:
> 2 cents ...
>
> after IPO, it will remain under Rs. 10.00
>
> All else is FALSE projection,
>
> JS
>
>
>
>   ----- Original Message -----
>   From: Sheikh Usman N.
>   To: telecom-gr...@googlegroups.com
>   Sent: Monday, April 19, 2010 1:05 PM
>   Subject: Re: Wateen Telecom IPO - An Opportunity for Investment
>
>   First thing is that those analysts are earning brokerage commission - so for them anything is good as long as IPO is successful. Second thing is what they're showing, the story they are wanting everyone to believe, it just doesn't make sense.
>

>   On Mon, Apr 19, 2010 at 12:34 PM, Syed Obaid Nasir <soba...@gmail.com> wrote:
>
>     "Analyst Reports who have concluded the share price to be in the range
>     of Rs.15 to Rs.22"
>
>     Trading is starting at Rs. 10.00 and as per my information that it
>     touched high Rs 13.90 and a low of Rs 11.30 to register closing at Rs
>     11.39 per share.
>
>     Closing value doesn't seem to be a satisfying enogh for someone to
>     invest in these shares.
>
>     regards,
>     Obaid-
>

>     > ___________________________________________________________________________­__________________________________

>
>     > Furqan H. Qureshi| General Manager| Wateen Telecom Limited |GSM: +92
>     > (321) 8293935 | Tel: +92 (21) 38005156
>

>     > Email:                    furqan.qure...@wateen.com

>
>     > URL:                        www.wateen.com
>
>     > Portal:                   news.wateen.com | epaper.wateen.com
>     > | autos.wateen.com | games.wateen.com
>
>     > Address:                6th Floor, Dawood Centre, M. T. Khan Road, Karachi,
>     > PAKISTAN
>
>     > ps. In case you receive this email more than once, my apologies for the
>     > inadvertent error on my part.
>
>     > --
>     > Manage your subscription:
>     >http://groups.google.com/group/telecom-grid-pakistan
>     > Browse and populate the community wiki at:http://wiki.telecompk.net
>
>     --
>     Manage your subscription:http://groups.google.com/group/telecom-grid-pakistan
>     Browse and populate the community wiki at:http://wiki.telecompk.net
>
>   --
>   Manage your subscription:http://groups.google.com/group/telecom-grid-pakistan
>   Browse and populate the community wiki at:http://wiki.telecompk.net
>
> --
> Manage your subscription:http://groups.google.com/group/telecom-grid-pakistan

> Browse and populate the community wiki at:http://wiki.telecompk.net- Hide quoted text -
>
> - Show quoted text -

[Muhammed Nasrullah]

Going public to pay off debt is a really bad idea. I wouldn't touch their stock with a 10 foot pole!

WS
-Nash

On Mon, Apr 19, 2010 at 12:47 PM, Sheikh Usman N. <usman....@gmail.com> wrote:

[Atti ur Rehman]

the healthy signs list goes on ...

 

a definite advantage but from an anlayst perpective, decisions are to be based on by also looking at some factors that include the following;

 

If the corporate governance of a company is shady?

The company rating goes down not because it has a comparative advantage, but because the quality of projections becomes suspect.

 

Are the systems of the organization functioning well? 

We have heard that the internal billing issues still not gotten resolved even after many years of operations. Rightsizing or downsizing (whatevery u want to call it is as per my knowledge still underway). major business units are still struggling not becuase of competition but probably because of market potential or product utility?

 

Need for goin IPO?

Funds are required for expansion. The cheapest source is internal. projected market share surely is strong to ensure funds are available. if not? lets put a question mark and move with the other source. Debt. are the banks willing to give loans? no? now is the problem. why are loans not being given to a particular company? one reason could be that they are overly leveraged, so IPO makes sense but then, one needs to look at the type of the issue (benefits & conditionalities)

 

Comparison with industry is important (difficult to do)

One of the gentlemen in the thread very rightly mentioned that the projections are too good to be true. When the same is true, manipulation might be a possibility.

 

making a decision is though difficult but one feels that it will not go beyond Re. 10

Disclaimer: No information shared above is based on insightful research on the industry or the company under review. 

Rgds

--
___
atti

[Ammar Faheem]

I'd agree to Jamal Shamsi's two cents... it will hover under Rs. 10 for a pretty long period of time. Not doubting the strength of the company in the next few years may be, but the next couple of years, i dont see any profits...

--
Best Regards
Ammar Faheem
http://www.ammar360.com