Tigo IPO Could Struggle

Colombia Movil, the no3 mobile operator, known under the brand name of Tigo is seeking to raise COP185.1bn (US$82.5mn) when it sells a 17.6% stake in its operations through an IPO. However, Millicom International, its major shareholder, which is to invest some US$200mn over the operator's network in 2007, with help from the IPO proceedings may find difficulty in offloading Tigo's shares. Local brokers have stated that they are unlikely to buy shares offered due to 'the risk related to the telecommunications industry being too high.'

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