2023-06-22 21:20:21
YEREVAN, Armenia, March 1, 2019 /PRNewswire/ — Team Telecom Armenia, one of the largest telecommunications companies in Armenia, has completed an initial public offering (IPO) with Ameriabank as the sole arranger of the process. This strategic collaboration marks an important milestone on the local capital market as it is the first IPO of a company from the TMT sector. The transaction enables Telecom Armenia to continue to leverage its growing infrastructure, improve its market presence and drive innovation in Armenia’s dynamic telecommunications sector.
The company will use the funds raised to expand fiber NGN network across Armenia, roll out 5G cellular network and activate new international channels. As the company operates in the field of digital technologies, it will also introduce modern digital tools and solutions and implement other ambitious projects.
“Today marks a significant milestone for Team Telecom Armenia as we begin our IPO, a testament to our commitment to growth, innovation and providing exceptional telecommunications services. This IPO will not only strengthen our infrastructure and market presence, but also give investors the opportunity to join us on this exciting journey. Together we will shape the future of Armenia’s telecom sector,” commented Hayk Yesayan, CEO of Team Telecom Armenia.
Ameriabank, the leading investment bank in Armenia and the largest financial institution in the local securities market, is acting as sole arranger and bookrunner for the AMD 8,240 million offering, which was structured in accordance with local regulatory requirements and following the placement on Armenia Securities Exchange to be listed. To improve accessibility for potential retail investors, Team Telecom shares can also be purchased through the MyInvest platform on Ameriabank’s mobile app. The platform allows investors to purchase the shares online, ensuring a streamlined and digital investment experience.
With a proven track record of transaction advisory across multiple sectors, Ameriabank recently successfully completed the largest corporate bond transaction in Armenia for Zangezur Copper Molybdenum Combine (ZCMC), one of the world’s leading molybdenum producers, in the local capital market. In its role as lead arranger and market maker, Ameriabank engaged international institutional investors such as the European Bank for Reconstruction and Development and the Black Sea Trade and Development Bank as anchor investors.
Artak Hanesyan, CEO of Ameriabank, commented, “We are delighted to partner with Team Telecom Armenia and bring our expertise and network to ensure a smooth execution of the company’s IPO. This transaction is a real milestone for the local capital market and will significantly boost the development of the Armenian stock market. We expect a well-diversified portfolio with active participation from both retail and institutional investors, which will ensure a liquid and deep secondary market.”
The announced IPO is another milestone in the development of Team Telecom Armenia, following the $45 million financing program launched in May 2022. The loan, granted by the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and Ameriabank, served to set up high-speed internet infrastructure in Armenia, including the roll-out of 4G cellular network and the construction of the NGN network (Next Generation Network) with a speed of 25 Gb/s throughout Armenia. The agreement will bring faster internet service to at least 1.1 million mobile subscribers and fiber optic internet access to more than 450,000 homes.
The expansion and access to capital through Team Telecom Armenia’s IPO should have a positive impact on the Armenian economy as the ICT (Information and Communication Technologies) sector has consistently achieved double-digit annual growth rates and has been one of the top three contributors over the past four years contributed to the country’s GDP growth. According to the latest statistics, ICT recorded growth of over 60% in 2023 Q1, contributing 2.93 percentage points to GDP growth and becoming the biggest growth driver in the first quarter of 2023.
About Team Telecom Armenia
Team Telecom Armenia is a purely Armenian brand and a strong team of thousands of professionals. The Company operates in the telecommunications sector in Armenia, providing mobile and fixed Internet services, as well as digital television, mobile and fixed telephony. Team is building a unique NGN (Next Generation Network) with a bandwidth of 25 Gb/s, offering internet, digital TV, mobile and fixed line communication services throughout Armenia.
Information regarding America Bank
Ameriabank is a leading financial institution and makes a significant contribution to the Armenian economy. As a dynamically developing universal bank, Ameriabank offers a large package of innovative banking services via its omnichannel sales platform and with a clear focus on digital products and ecosystems. Ameriabank has taken a customer-centric approach to ensure service quality and a modern banking experience in an evolving digital environment. Ameriabank is committed to conducting its business responsibly and driving Armenia’s transition to a sustainable future.
Questions & contact:
Artyom Mkrtchyan,
Artyom.Mkrtchyan@ameriabank.am,
+37410 56 11 11/ Satenik Khachatryan,
satenik.khachatryan@telecomarmenia.am,
+374 93762032
1687482488
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