Sify shooting for +70% growth in subscribers in current fiscal - Bloomberg
Satyam Infoway Raising $130 Mln Selling More ADRs (Update1)
2/17/00 6:00:00 AM
Source: Bloomberg News
(Adds number of shares being sold in 2nd paragraph and details in 6th paragraph.)
Hyderabad, Feb. 17 (Bloomberg) -- Satyam Infoway Ltd., the second-largest Indian Internet service provider, is raising $130 million through the sale of additional American depositary receipts, Merrill Lynch Asia Pacific Ltd. said.
The ADRs of the company, a unit of Satyam Computer Services Ltd., are being sold at $80 each, a 9.24 percent premium to the stock's seven-day average price, Merrill Lynch said in a statement. The company will sell 1.625 million new ADRs.
'This financing reflects the investor excitement for Satyam Infoway, its recent acquisition of IndiaWorld and the potential of the Internet in India,' said Aj Rahman, regional head of equity capital markets at Merrill Lynch. Demand for issue crossed $2 billion.
In October last year, Satyam Infoway sold 4.175 million ADRs at $18. Satyam Infoway shares rose 15 cents, or 22 percent, to $83 on the Nasdaq exchange yesterday. Each ADR represents one-fourth of an equity share.
Satyam in November bought 24.5 percent of IndiaWorld Communications for $28 million and has an option to buy the rest of the company between April 1 and Sept. 30, the money being raised will be used to fund the payment.
Internet subscribers of Satyam Infoway, which helps the Indira Gandhi National Open University teach its students who are spread all over the country on the Internet, had 113,000 (129,000 per SEC F-1/A 2/16/00) connections till Jan. 31. The company aims for more than 70 percent growth this fiscal year as more Indians surf the Internet.
Satyam Computer shares, which have risen 45 percent this month, surged 8 percent to 4,326.45 rupees on the Mumbai Stock Exchange. |
