Singtel plans NetLink Trust IPO: Sources
SINGTEL plans to list its broadband unit on the Singapore stock exchange, slashing its stake by more than 75 per cent, sources close to the matter said yesterday.
One source said South-east Asia's largest telco is expected to appoint banks by the end of this year and the initial public offering of NetLink Trust could be launched in the second half of next year.
Singtel, whose largest shareholder is state investor Temasek Holdings, was given an April 2018 deadline by regulator Infocomm Development Authority (IDA) to reduce its stake in NetLink Trust, which provides high-speed broadband network.
The sources, who declined to be identified because the listing discussions are being kept private, said Singtel has been mulling over a NetLink Trust IPO for years.
But they said the company had yet to finalise valuations, set a time frame or appoint banks for the deal.
"We do have a deadline that was given by IDA that is by April 2018, we will work towards that timeline," group CEO Chua Sock Koong said during an earnings briefing earlier yesterday, declining to give further details.
The Wall Street Journal had reported on Wednesday plans about the potential NetLink IPO.
In a research note last month, Nomura said the enterprise value of NetLink could be between $4 billion and $4.5 billion, adding that it was likely to be listed by next year.
Yesterday, Singtel reported a flat fourth-quarter net profit of $946 million.