SCT is planning to launch an IPO in the coming months (See Appendix for details). Use the market multiples technique to estimate a market price range for the shares of SCT. Assume that the companies you considered in parts (a) and (c) of this question are relevant comparators to SCTs business.

The main company: Ooredoo

Appendix: Investment propositions brief Investment Proposition 1 HSI is interested in the utilities sector and has identified Star Call Telecommunications Company (SCT) as a potential investment. SCT is a privately held company based in the UAE with operation across the GCC. SCT is looking for investors and HSI is interested in buying shares in the company. HSI would like your help to value SCT's shares. Your team has collected information about SCT and about its closest competitors in the market i.e. Du, and Etisalat. Below are extracts of SCT's Income Statement and Balance Sheet as at 31 December 2021 along with some of its main competitors in the sector i.e. Du, Etisalat, Ooredoo, and Mobily. Star Call Telecommunications Company (SCT) SCT is a new mobile telecommunications provider in the GCC market. [Note: SCT is a fictitious company, created for the purpose of this assignment]. It was founded in 2015 in Dubai with the ambition to become a major player in the GCC region. It has now established a strong presence in the UAE, Kuwait, and Oman. It now plans to expand into Saudia Arabia, Barhrain, and Qatar. Their expansion plans will be based on the acquisition of several mobile operators across the region. In September 2019, SCT became the fastest growing mobile phone networl in the region. Its brand ranked in the top 10 most recognisable home-grown brands in the region with a strong brand rating. They currently operate a 4G network with 5G offering only major cities such as Dubai, Abu dhabi, Kuwait City and Oman. They plan to generalise the use of 5G in all its markets. Their key area of strength is in data packages targeting youth. The company is currently owned by Jassim Al Arabi ( 60% of shares) and a Dubai based investment fund (DXB future Finance, 40% of shares). Jassim was an HCT graduate who completed his bachelor degree in 2005. The company's strategy is centered on evolving its core telecom business to maximize value and build on the company's numerous strength. SCT's vision is to enrich the lives of individuals and enable businesses with cutting-edge ICT and digital lifestyle services. SCT intends to open its capital to new investors by conducting an IPO. It intends to list its stocks on Dubai Financial Market. Balance sheet \begin{tabular}{l} \hline ASSETS \\ \hline Current assets \\ Non-current assets \\ \hline Total Assets \\ \hline Additional Information (at 31 December 2021): \end{tabular} \begin{tabular}{lc} Du telecom & \\ \cline { 2 } Income statement & 2021 \\ & AED '000 \\ \hline Revenue & 11,681,970 \\ Operating expenses & (9,089,523) \\ Other expenses & (1,537,927) \\ \hline Operating profit & 1,054,520 \\ \hline Other non-operating income & 152,571 \\ Finance cost & (106,347) \\ \hline Profit before tax & 1,100,744 \\ \hline Tax & 1,100,744 \\ \hline Net profit & \\ \hline & \\ Note: & 2,025,244 \\ Depreciation and amortisation & \\ Balance Sheet & 2021 \\ \hline ASSETS & AED '000 \\ \hline Current assets & 12,563,506 \\ Non-current assets & 115,679,340 \\ \hline Total Assets & \end{tabular} \begin{tabular}{ll} LIABILITIES AND EQUITY & \\ \hline Current Liabilities & 5,909,876 \\ Non-current liabilities & 2,237,583 \\ \hline Total liabilities & 8,147,459 \\ \hline \end{tabular} \begin{tabular}{lc} Equity & \\ \hline Attributable to the Company's shareholders & 8,531,887 \\ Non-controlling interests & \\ \hline Total equity & 8,531,887 \\ \hline Total Liabilities and Equity & 16,679,346 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|c|} \hline Number of shares ('O00) & 4,532,906 \\ \hline Share price (AED) & 6.62 \\ \hline Long-term debt (AED '000) & 1,553,484 \\ \hline Short-term debt (AED '000) & 871,502 \\ \hline \end{tabular} Etisalat \begin{tabular}{ll} UABIUITIES AND EQUITY & \\ \hline Current Liabilities & 43,669,572 \\ Non-current liabilities & 26,963,672 \\ \hline Total liabilities & 70,633,244 \\ \hline \end{tabular} \begin{tabular}{lc} Equity \\ \hline Attributable to the Company's shareholders & 47,586,036 \\ Non-controlling interests & 9,977,786 \\ \hline Total equity & 57,563,822 \\ \hline Total Liabilities and Equity & 128,197,066 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|c|} \hline Number of shares ('O00) & 8,696,754 \\ \hline Share price (AED) & 31.7 \\ \hline Long-term debt (AED 'O00) & 19,176,107 \\ \hline Short-term debt (AED 'O00) & 6,556,178 \\ \hline \end{tabular} Mobily (Etihad Etisalat Company SJSC) \begin{tabular}{ll} LIABILITIES AND EQUITY & \\ \hline Current Liabilities & 11,299,200 \\ Non-current liabilities & 12,868,462 \\ \hline Total liabilities & 24,167,662 \\ \hline \end{tabular} \begin{tabular}{lc} Equity \\ \hline Attributable to the Company's shareholders & 15,196,246 \\ Non-controlling interests & \\ \hline Total equity & 15,196,246 \\ \hline Total Liabilities and Equity & 39,363,908 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|r|} \hline Number of shares ('O00) & 770,000 \\ \hline Share price (SR) & 31.15 \\ \hline Long-term debt (SR '000) & 11,816,726 \\ \hline Short-term debt (SR' 000) & 2,138,023 \\ \hline \end{tabular} Ooredoo \begin{tabular}{ll} LIABILITIES AND EQUITY & \\ \hline Current Liabilities & 26,952,250 \\ Non-current liabilities & 23,996,750 \\ \hline Total liabilities & 50,949,000 \\ \hline \end{tabular} \begin{tabular}{lr} Equity \\ \hline Attributable to the Company's shareholders & 21,221,813 \\ Non-controlling interests & 5,186,715 \\ \hline Total equity & 26,408,528 \\ \hline Total Liabilities and Equity & 77,357,528 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|c|} \hline Number of shares ('O00) & 3,203,200 \\ \hline Share price (QR) & 7.02 \\ \hline Long-term debt (QR 'O00) & 18,943,487 \\ \hline Short-term debt (QR 'O00) & 1,454,537 \\ \hline \end{tabular} Appendix: Investment propositions brief Investment Proposition 1 HSI is interested in the utilities sector and has identified Star Call Telecommunications Company (SCT) as a potential investment. SCT is a privately held company based in the UAE with operation across the GCC. SCT is looking for investors and HSI is interested in buying shares in the company. HSI would like your help to value SCT's shares. Your team has collected information about SCT and about its closest competitors in the market i.e. Du, and Etisalat. Below are extracts of SCT's Income Statement and Balance Sheet as at 31 December 2021 along with some of its main competitors in the sector i.e. Du, Etisalat, Ooredoo, and Mobily. Star Call Telecommunications Company (SCT) SCT is a new mobile telecommunications provider in the GCC market. [Note: SCT is a fictitious company, created for the purpose of this assignment]. It was founded in 2015 in Dubai with the ambition to become a major player in the GCC region. It has now established a strong presence in the UAE, Kuwait, and Oman. It now plans to expand into Saudia Arabia, Barhrain, and Qatar. Their expansion plans will be based on the acquisition of several mobile operators across the region. In September 2019, SCT became the fastest growing mobile phone networl in the region. Its brand ranked in the top 10 most recognisable home-grown brands in the region with a strong brand rating. They currently operate a 4G network with 5G offering only major cities such as Dubai, Abu dhabi, Kuwait City and Oman. They plan to generalise the use of 5G in all its markets. Their key area of strength is in data packages targeting youth. The company is currently owned by Jassim Al Arabi ( 60% of shares) and a Dubai based investment fund (DXB future Finance, 40% of shares). Jassim was an HCT graduate who completed his bachelor degree in 2005. The company's strategy is centered on evolving its core telecom business to maximize value and build on the company's numerous strength. SCT's vision is to enrich the lives of individuals and enable businesses with cutting-edge ICT and digital lifestyle services. SCT intends to open its capital to new investors by conducting an IPO. It intends to list its stocks on Dubai Financial Market. Balance sheet \begin{tabular}{l} \hline ASSETS \\ \hline Current assets \\ Non-current assets \\ \hline Total Assets \\ \hline Additional Information (at 31 December 2021): \end{tabular} \begin{tabular}{lc} Du telecom & \\ \cline { 2 } Income statement & 2021 \\ & AED '000 \\ \hline Revenue & 11,681,970 \\ Operating expenses & (9,089,523) \\ Other expenses & (1,537,927) \\ \hline Operating profit & 1,054,520 \\ \hline Other non-operating income & 152,571 \\ Finance cost & (106,347) \\ \hline Profit before tax & 1,100,744 \\ \hline Tax & 1,100,744 \\ \hline Net profit & \\ \hline & \\ Note: & 2,025,244 \\ Depreciation and amortisation & \\ Balance Sheet & 2021 \\ \hline ASSETS & AED '000 \\ \hline Current assets & 12,563,506 \\ Non-current assets & 115,679,340 \\ \hline Total Assets & \end{tabular} \begin{tabular}{ll} LIABILITIES AND EQUITY & \\ \hline Current Liabilities & 5,909,876 \\ Non-current liabilities & 2,237,583 \\ \hline Total liabilities & 8,147,459 \\ \hline \end{tabular} \begin{tabular}{lc} Equity & \\ \hline Attributable to the Company's shareholders & 8,531,887 \\ Non-controlling interests & \\ \hline Total equity & 8,531,887 \\ \hline Total Liabilities and Equity & 16,679,346 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|c|} \hline Number of shares ('O00) & 4,532,906 \\ \hline Share price (AED) & 6.62 \\ \hline Long-term debt (AED '000) & 1,553,484 \\ \hline Short-term debt (AED '000) & 871,502 \\ \hline \end{tabular} Etisalat \begin{tabular}{ll} UABIUITIES AND EQUITY & \\ \hline Current Liabilities & 43,669,572 \\ Non-current liabilities & 26,963,672 \\ \hline Total liabilities & 70,633,244 \\ \hline \end{tabular} \begin{tabular}{lc} Equity \\ \hline Attributable to the Company's shareholders & 47,586,036 \\ Non-controlling interests & 9,977,786 \\ \hline Total equity & 57,563,822 \\ \hline Total Liabilities and Equity & 128,197,066 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|c|} \hline Number of shares ('O00) & 8,696,754 \\ \hline Share price (AED) & 31.7 \\ \hline Long-term debt (AED 'O00) & 19,176,107 \\ \hline Short-term debt (AED 'O00) & 6,556,178 \\ \hline \end{tabular} Mobily (Etihad Etisalat Company SJSC) \begin{tabular}{ll} LIABILITIES AND EQUITY & \\ \hline Current Liabilities & 11,299,200 \\ Non-current liabilities & 12,868,462 \\ \hline Total liabilities & 24,167,662 \\ \hline \end{tabular} \begin{tabular}{lc} Equity \\ \hline Attributable to the Company's shareholders & 15,196,246 \\ Non-controlling interests & \\ \hline Total equity & 15,196,246 \\ \hline Total Liabilities and Equity & 39,363,908 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|r|} \hline Number of shares ('O00) & 770,000 \\ \hline Share price (SR) & 31.15 \\ \hline Long-term debt (SR '000) & 11,816,726 \\ \hline Short-term debt (SR' 000) & 2,138,023 \\ \hline \end{tabular} Ooredoo \begin{tabular}{ll} LIABILITIES AND EQUITY & \\ \hline Current Liabilities & 26,952,250 \\ Non-current liabilities & 23,996,750 \\ \hline Total liabilities & 50,949,000 \\ \hline \end{tabular} \begin{tabular}{lr} Equity \\ \hline Attributable to the Company's shareholders & 21,221,813 \\ Non-controlling interests & 5,186,715 \\ \hline Total equity & 26,408,528 \\ \hline Total Liabilities and Equity & 77,357,528 \\ \hline \end{tabular} Additional Information (at 31 December 2021): \begin{tabular}{|l|c|} \hline Number of shares ('O00) & 3,203,200 \\ \hline Share price (QR) & 7.02 \\ \hline Long-term debt (QR 'O00) & 18,943,487 \\ \hline Short-term debt (QR 'O00) & 1,454,537 \\ \hline \end{tabular}