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Singtel prices NetLink IPO at S$0.81 per unit, near low end of talk
SINGAPORE Telecommunications (Singtel) has priced the initial public offering (IPO) of NetLink NBN Trust at 81 Singapore cents per unit, coming near the low end of its marketing range.
The IPO will raise gross proceeds of about S$2.35 billion, making it the largest primary offering on Singapore Exchange in about four years.
Selling parent Singtel will receive about S$1.10 billion in cash, which it will use for debt repayment, re-investments, acquisitions and other initiatives.
Price talk for the deal was between 80 and 93 Singapore cents. Listing will take place on July 19.
The offering will reduce Singtel's stake in the broadband unit to 24.99 per cent, in line with the telco's regulatory undertaking to divest its stake to below 25 per cent before April 2018.
Singtel group chief executive officer Chua Sock Koong said: "This is a very positive outcome that serves the best interests of all stakeholders. We remain invested in NetLink Trust's long-term growth potential."
DBS Bank, Morgan Stanley and UBS are the joint issue managers and global coordinators of the deal.