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SINGAPORE (July 6): MyRepublic has ended months of speculation with CEO Malcolm Rodrigues saying it does not intend to acquire M1 after its failed bid to become Singapore’s fourth telco operator.
Instead, the fibre broadband services provider will become a mobile virtual network operator (MVNO) in Singapore, buying mobile bandwidth wholesale from one of the republic’s three telcos.
A deal has already been struck with one of the telcos and the partnership would be announced within “one month to 45 days”, says Rodrigues.
In a press conference to announce its latest round of fund-raising, Rodrigues also revealed that the company is gearing up for an IPO in end 2018.
The Singapore Exchange, the Hong Kong Exchange and the Australian Securities Exchange are possible destinations for the IPO.
The IPO proceeds will be used to help it break into more than 10 new markets in Asia, including Malaysia, the Philippines, Sri Lanka, Myanmar, Cambodia and Vietnam.
MyRepublic is raising $100 million in Series C Funding at a post-money valuation of $650 million.
The company is working with CLSA investment bank and the money will be raised solely through equity.
Fundraising started in May and will finish in the next 60 to 90 days. Two-thirds of the funding will be used to build its fibre business in Indonesia while the remaining will be used for customer acquisition in Australia and New Zealand.
MyRepublic started with a capital of $3 million. The company had previously raised $117 million from strategic investors and family offices. They are now looking towards more long-term private equity investors.
MyRepublic is currently operating in Singapore, New Zealand, Australia and Indonesia, and are aiming for a 5% market share in most markets.
It currently has 70,000 broadband customers in Singapore, 100,000 in Indonesia, 28,000 in Australia and 15,000 in New Zealand.
The company is currently cash flow positive in Singapore, says Rodrigues. It will turn cash flow positive late this year for New Zealand, end of next year for Australia and in 2019 for Indonesia.
According to Rodrigues, the company only took two years to become EBITDA positive, as opposed to a traditional telco which takes approximately five years.
Revenue for 2016 is $80 million and is expected to reach $140 million in 2017. Rodrigues claims that MyRepublic can break even with 2% market share in each of its market.