Team Telecom Armenia announces IPO in Armenia with Ameriabank as the sole arranger

YEREVAN, Armenia, June 22, 2023 /PRNewswire/ -- Team Telecom Armenia, one of the largest telecommunication companies in Armenia, launched Initial Public Offering (IPO) with Ameriabank acting as the sole arranger for the process. This strategic collaboration marks a significant milestone in the local capital market as the first ever IPO by a TMT sector company. The deal will enable Telecom Armenia to further capitalize on its growing infrastructure, enhance its market presence and drive innovation in Armenia's dynamic telecommunications sector.

The company will use the raised funds for the rollout of the fiber optic NGN network throughout Armenia, the launch of the 5G mobile network, and the activation of new international channels. Being engaged in the field of digital technologies, the company will also introduce modern digital tools and solutions as well as implement other ambitious projects.

"Today marks a significant milestone for Team Telecom Armenia as we embark on our Initial Public Offering, a testament to our commitment to growth, innovation, and delivering exceptional telecommunications services. This IPO will not only strengthen our infrastructure and market presence but also provide an opportunity for investors to join us on this exciting journey. Together, we will shape the future of Armenia's telecommunications sector," commented Hayk Yesayan, CEO of Team Telecom Armenia.

Ameriabank, the leading investment bank in Armenia and largest financial institution in the local securities market, acts as the sole arranger and bookrunner for the AMD 8,240 million offering, structured in compliance with the local regulatory requirements and to be listed on Armenia Securities Exchange after the placement. To enhance accessibility for potential retail investors, Team Telecom shares are also available for purchase through MyInvest platform on Ameriabank's mobile app. The platform allows investors to purchase the stocks online, ensuring a streamlined and digitally-enabled investment experience.

With a proven track record in transaction advisory services across various sectors, Ameriabank's most recent significant deal in the local capital market includes the successful execution of the largest-ever corporate bond transaction in Armenia for the Zangezur Copper Molybdenum Combine (ZCMC), one of the top molybdenum producers in the world. Acting as the lead arranger and market-maker, Ameriabank engaged international institutional investors such as the European Bank for Reconstruction and Development, the Black Sea Trade and Development Bank, among them, as anchor investors.

Artak Hanesyan, CEO at Ameriabank, commented; "We are delighted to partner with Team Telecom Armenia and bring our expertise and network to ensure smooth execution of the company's IPO. This is a truly landmark transaction for the local capital market and will greatly support the development of equity market in Armenia.  We expect to have a well-diversified book with active participation of both retail and institutional investors, which will ensure 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 facilitated by the International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and Ameriabank was aimed at implementing high-speed internet infrastructure in Armenia, including the expansion of its 4G mobile network and the construction of the 25 Gb/s speed NGN (Next Generation Network) network across Armenia. The deal offers faster internet services to at least 1.1 million subscribers of the mobile system, and fiber optic internet access to more than 450,000 households. 

The expansion and access to capital through Team Telecom Armenia IPO are expected to have a positive impact on Armenia's economy as the ICT (Information and communication technologies) sector has been consistently achieving double-digit annual growth rates, becoming one of the top three largest contributors to the country's GDP growth for recent 4 years. According to the most recent statistics, ICT registered over 60% growth in 2023 Q1, contributing by 2,93 pp to GDP growth and becoming the largest contributor to GDP growth in 2023 Q1.

About Team Telecom Armenia

Team Telecom Armenia is an entirely Armenian brand and a powerful team of thousands of professionals. The company operates in the field of telecommunications in Armenia, which provides mobile and fixed Internet services, as well as digital television, mobile and fixed telephone services. Team builds a unique NGN (Next Generation Network) with a bandwidth of 25 Gb/s and provides Internet, digital television, mobile, and fixed communication services throughout Armenia.

About Ameriabank

Ameriabank is a leading financial institution and a major contributor to the Armenian economy. Being a dynamically developing universal bank, Ameriabank provides a large package of innovative banking services through its omni-channel distribution platform and with clear focus on digital products and ecosystems. Ameriabank has adopted a customer-focused approach to ensure service quality and modern banking experience in an evolving digital environment. Ameriabank is committed to doing business responsibly and advancing Armenia's transition towards a sustainable future.

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SOURCE AmeriaBank; Telecom Armenia