Spice targets end-June share offer

KUALA LUMPUR, June 19 (Reuters) Malaysia's dominant phone company, Telekom Malaysia Bhd , said on Tuesday its Indian mobile affiliate, Spice Communications Ltd, has received approval to list on the Bombay Stock Exchange.

Spice plans to issue 137.985 million shares in the offer, including a public issue of 113.11 million shares with a price band set at 41-46 rupees per share, Telekom said in a statement.

The offering is targeted for June 25-27, Telekom Chief Executive Abdul Wahid Omar was quoted as saying in the statement.

Telekom holds 49 percent of Spice through its wholly-owned unit, TMI India. The promoters, Dilip Modi and Modi Wellvest Private Ltd., own the remaining 51 percent stake in Spice.

Spice recently concluded a pre-IPO placement of 24.87 million shares at 45 rupees each, raising about .6 million.

Telekom's shareholding in Spice will be diluted to 39.2 percent after the offering.

Proceeds of the IPO would be used to repay debt, pay for licences and for capital expenditure and business expansion, Wahid said.

Spice, which currently provides cellular services in Punjab and Karnataka, has applied for mobile service licenses to operate in 20 more areas.

REUTERS PV GC1731