Singtel has launched an up to S$2.63 billion ($1.89 billion) IPO for its fiber broadband subsidiary NetLink NBN Trust.
NetLink NBN Trust is the holding company for NetLink Trust, the company operating the passive infrastructure for the next generation nationwide broadband network (NG-NBN).
NetLink NBN Trust has filed a preliminary prospectus with the Monetary Authority of Singapore ahead of the planned IPO and listing of the company on the Singapore stock exchange.
In its role as the NetCo for the NG-NBN, NetLink Trust designs, builds, owns and operates the ducts, manholes, fiber cables and central offices and other passive infrastructure for the network. Its assets include around 76,000km of fiber cable.
The company sells wholesale dark fiber services to licensees including Singtel itself, StartHub, M1 and MyRepublic. It recorded revenue of S$299 million and net profit of NZ$79.4 million in the most recent financial year ending in March.
The IPO is expected to give NetLink Trust an initial market capitalization of between S$3.09 billion and S$3.59 billion.
It will also fulfill Singtel’s regulator-mandated requirement of divesting at least 75% of the trust before next April, as part of the structural separation requirements for the state-led NG-NBN project.
The IPO is on track to become Singapore’s largest public float since the S$7.6 billion listing of Hutchinson Port Holdings Trust in 2011.