President Mohamed Nasheed has said that Government aims to expand its economic and fiscal reform agenda by divesting part of its stake in Dhiraagu to the Maldivian public. The President made this statement while speaking at the launch event of Dhiraagu Initial Public Offering held at Dharubaaruge last night.

At the event the President reiterated that economic policies which promote public private partnerships are necessary to develop economic growth of this country.

Further to the announcement made by the Government on 24th August 2011 regarding its intention to reduce its shareholding in Dhiraagu through a local IPO (Initial Public Offering), President Nasheed said that the government has agreed to divest 15% of its 48% stake in Dhiraagu to the Maldivian public.
 
During his speech, the President commended the efforts of Dhiraagu on its decision to sell shares in the business to the public, and provide Maldivians with an opportunity to invest in a dynamic business. In his speech, the President highlighted on the distinction between business engagements and government affairs stating that business is done to gain profit, while government is run to seek justice for the people and to serve them.
 
President Nasheed also spoke on governments’ economic and fiscal reform through implementation of the new taxes. The President also assured that the government introduction of direct taxation will allow a sustainable revenue base and that the governments programme will bring income up to a level where necessary expenditures can be met and lead to a balanced budget.
 
At the ceremony, President Nasheed launched a Prospectus for Dhivehi Raajjeyge Gulhun (Dhiraagu) which makes an invitation in respect of 11,400,000 shares at a share offer price of MRf 80.00, payable in full on application.  This will be an important landmark for the Maldives, as it will be the first time shares in a Maldivian business will be traded on an international stock exchange.
 
Dhiraagu has invested US$155 million in developing its network and operations within the Maldives. The company employs more than 600 people, 99 per cent of whom are Maldivians. Dhiraagu was formed as a joint venture company between the government and Cable & Wireless in 1988, with 55 per cent share owned by the government.