CFA Society Singapore
SINGAPORE (July 11): Fibre network owner NetLink NBN Trust on Monday launched its $2.3 billion initial public offering (IPO), making it the largest new listing in Singapore since the US$5.5 billion ($7.6 billion) IPO of Hutchison Port Holdings Trust in 2011.
NetLink NBN Trust is offering nearly 2.9 billion units at 81 cents each – near the bottom of the initial pricing range of between 80 cents and 93 cents. Tong Yew Heng, CEO of the trustee manager, says he is satisfied with the price.
The offering price values the market capitalisation of the trust at approximately $3.1 billion.
“We had a very diverse and quality mix of investors.” says Tong. “From our standpoint the demand has been very healthy and strong.”
“We are targeting a positive after-market performance for this transaction.” said Vijay Vaidyanathan, head of Southeast Asia capital markets at Morgan Stanley. “Also, this is a pretty large transaction.”
According to Vaidyanathan, NetLink NBN Trust’s IPO is also one of the largest in Asia this year. It is second only to South Korean mobile gaming company Netmarble Games Corp, which raised 2.7 trillion won ($3.1 billion) in May.
NetLink’s IPO consists of an international placement of just over 2.7 billion units for institutional and other investors, as well as a public tranche of 185 million units for retail investors in Singapore.
Immediately after the offering, Singtel will hold a 24.99% stake in NetLink NBN Trust, which was established primarily for the purpose of owning all of the units of NetLink Trust.
The public offer will close at 12 noon on July 17.