Starcomms, Nigeria's leading CDMA (Code Division Multiple Access) triple-play service provide, went to the nation's capital market on Monday to source initial capital of approximately 6.9 billion naira (US$58.8 million).

As a result of its visit to the capital market, Starcomms has now become a public limited company listed on the Nigerian Stock Exchange (NSE).

"We have always wanted two sectors of the market, [those] being the oil and telecommunications sectors, represented in our market, said Binus Yaroe, the NSE's general manager of listing and quotations and a representative of the director general. "Today, we are making history."

Ordinary shares of 50 kobo were initially offered at 13.65 naira each and had appreciated by 5 percent, to 4.33 naira per share, at the close of trading on Tuesday.

"We believe in the concept of delivering and concept of transparency," said Starcomms CEO and Managing Director Maher Qubain of the listing.

The funds acquired through the capital market are necessary for Starcomms' main goal of network expansion, according to Qubain, as the telecom operator plans to expand to 31 cites within the next year.

Starcomms hopes to commence dividend payments in 2010, as its financial commitment to expanding its mobile network and consolidating leadership will take precedence, Qubain said.

Starcomms commercially launched in Nigeria in 1999 and now delivers telecommunications products and services to a subscriber base of over 1 million.

The IDG News Service is a Network World affiliate.