NetLink Trust said to be set to raise $1.7b from IPO

telecomasia.net

Singtel's NetLink NBN Trust is reportedly set to price its IPO at close to the bottom of its indicative range, but the offer is still set to be Singapore's largest public listing in more than four years.

The offering is on track to be priced at S$0.81 per unit ($0.59), near the bottom of the indicative range of S$0.80 to S$0.93 per unit, Reuters reported, citing two sources familiar with the transaction.

This would allow NetLink NBN Trust – the company building and operating the  passive infrastructure for Singapore's Next-Generation National Broadband Network (NG-NBN) - to raise around $1.7 billion and give the company a market capitalization of around S$3.1 billion.

NetLink will offer 2.9 billion units in the IPO, and is slated for debut on the Singapore stock exchange next week, the report states.

Singtel was required to agree to divest at least 75% of NetLink by next April as part of the structural separation requirements for the state-led NG-NBN project. The company launched the IPO last month.

NetLink trust owns assets including 76,000km of dark fiber as well as other passive infrastructure. The company recorded recorded revenue of S$299 million and net profit of S$79.4 million in the financial year ending in March.

About the author

Commentary

5G and data center-friendly network architectures

Matt Walker / MTN Consulting

Webscale and transmission network operators' interests are aligning as the 5G era dawns

Matt Walker / MTN Consulting

Webscale and transmission network operators' interests are aligning as the 5G era dawns

Rémy Pascal / Analysys Mason

The launch of 5G by South Korean operators serves as a first benchmark for other operators around the world