Singtel's Unit Launches Singapore's Biggest IPO in Six Years

By Gaurav Raghuvanshi Features Dow Jones Newswires

A unit of Singapore Telecommunications Ltd. (Z74.SG) Monday priced its proposed initial public offering, seeking to raise 2.35 billion Singapore dollars (US$1.7 billion).

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NetLink NBN Trust, which owns a fiber-optic cable network in Singapore, is seeking to sell 2.9 billion units at S$0.81 each in the IPO, according to a prospectus filed with the Monetary Authority of Singapore. The offer price is at the lower end of a range between S$0.80 and S$0.93 indicated last month.

The size of the sale may rise to 3.02 billion units, raising S$2.45 billion, if an option of over-allotment is exercised.

NetLink provides high-speed broadband service to customers in Singapore. The sale, if successful, would be the largest fundraising in more than six years in the city-state, after Hutchison Port Holdings Trust's US$5.5 billion IPO in 2011.

The IPO may also boost Singapore's equities market, which is facing a drought in such fundraising. So far this year, the biggest IPO in the country has been recruiting agency HRnet Group Ltd.'s S$174 million offering.

DBS Bank Ltd., Morgan Stanley and UBS AG are among the banks handling the IPO.

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Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com

(END) Dow Jones Newswires

July 10, 2017 04:00 ET (08:00 GMT)