Hot stock: NetLink NBN Trust flat at IPO price on second day

NETLINK NBN Trust, which made its debut on the Singapore Exchange on Wednesday, opened flat at its inital public offering (IPO) price of S$0.81 on Thursday.

Over 184 million shares worth S$149 million were traded on Wednesday after the opening bell at 3 pm.

NetLink traded within the S$0.805 to S$0.815 range.

The closing price of S$0.81 on Wednesday means that the trust is valued at S$3.1 billion, giving an annualised distribution yield of 5.43 per cent for the forecast period from Aug 1, 2017 to March 31, 2018.

NetLink's IPO, which raised S$2.3 billion in gross proceeds, is the biggest in Singapore since 2011 when Hutchison Port Holdings Trust raised about S$7.7 billion in gross proceeds.

NetLink's revenue is projected to increase at a compound annual growth rate of 6.7 per cent from S$300 million in the 2017 fiscal year to S$341.9 million in 2019.

Distribution in 2019 is projected to be S$179.4 million.