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Reliance Sets Price Range for U$1-billion Singapore IPO: IFR

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by Ernie B. Calucag

India’s Reliance Communications has set an indicative price range for the Singapore initial public offering (IPO) of its undersea cable unit that could raise as much as US$1.0 billion (S$1.27 billion), Reuters’ IFR Asia reported on Monday.

Global Telecommunications Infrastructure Trust, which is structured as a business trust, plans to sell between 642.2 million and 757.6 million units at a price range of US$1.09 to US$1.32 a unit, IFR said. This translates to a distribution yield of 9.5 per cent to 11.5 per cent for 2013.

The size of the offering ranges from US$700.0 million to US$1.0 billion, according to an offer document seen by IFR.

The stake of sponsor Reliance Globalcom, a wholly-owned subsidiary of Reliance Communications, will be between 25 and 37 per cent after the issue.

The offer opens on July 9 (Monday) and will close on July 16. Listing is targeted for July 23 and the listing currency is US dollars.

Reliance Communications is looking to raise funds to ease a debt load of US$7.0 billion as of March this year. The group has been unsuccessful in several attempts to raise money by selling assets.