Telenor Xpress 4 - 2000

GOING PUBLIC

On December 4, 2000 Telenor raised USD 1.7 billion from the sale of 372,151,899 ordinary shares on financial markets in Europe and the United States. But for the company's 21,000 employees and 50,000 retail and 300 institutional investors, the big question remains: Now what?

As one of Europe's last state-owned telecommunications companies to be listed on financial markets in Europe and the United States, Telenor has officially joined the highly-competitive global telecommunications arena. And while many at the company are pleased that the IPO process has been successfully completed, the real work has just begun.

"I feel a tremendous sense of responsibility to our shareholders," says Tormod Hermansen, President and CEO of Telenor. "They have demonstrated their confidence in Telenor and we must continue to earn their confidence by offering good returns." Hermansen must also answer to the Norwegian government, which maintains a controlling interest in the company.

But Hermansen is not alone - 45 per cent of Telenor's employees are also shareholders, a figure that is likely to rise when the company begin to offer an options programme. According to Torstein Moland, Telenor's chief financial officer, the company has plans to introduce the scheme sometime next year. "Telenor's ability to attract high quality staff will be enhanced by the introduction of an equity-based management incentivisation programme, which we hope to put in place during the spring of 2001."

While the company raised an impressive USD 1.7 billion in the IPO, Moland acknowledges that Telenor's share offering occurred in less than ideal market conditions. "In the type of market that we have had recently, it is not reasonable to expect a strong performance in the immediate after-market. However, our global co-ordinators tell us that they are confident that the shares will trade strongly once the market has settled down."

Hermansen agrees, insisting that the benefits of being a publicly-traded company open up new and exciting opportunities for the company. "Being listed on the financial markets has given us access to capital markets, encouraged us to continue seeking growth opportunities at home and abroad, and will help improve customer relations. After all, many of our customers are also shareholders."

The ordinary shares will be listed on the Oslo Stock Exchange under the symbol "TEL" and the ADRs (American Depository Receipts) will be listed on the Nasdaq Exchange under the symbol "TELN". For more details and access to financial information, interactive charts and stock-tracking functions, please visit http://www.telenor.no/investor/.



Text by: Alexander Wardwell