NetLink NBN Trust, the company building the passive infrastructure for Singapore’s next-generation nationwide broadband network (NG-NBN), has closed its IPO two times oversubscribed.
The public offer received S$4.7 billion ($3.44 billion) worth of subscriptions, two times the value of shares on offer. The offer involved a placement of around 2.7 billion units to institutional and other investors as well as a public offering of 185 million units.
Assuming the over-allotment option is not exercised, following the closure of the offer, NetLink NBN Trust’s current 100% owner Singtel’s stake in the company will be reduced to 25% minus one unit, and NetLink’s market capitalization will be around S$3.1 billion. Trading on the Singapore stock exchange is expected to commence this afternoon.
Singtel was required to agree to bring its shareholding in the company below 25% by next April as a condition of winning the tender for the passive infrastructure component of the state-led NB-NBN project.
“The robust demand from both institutional investors and retail investors to our IPO is a strong vote of confidence in the NetLink Group’s unique investment proposition,” NetLink NBN Trust CEO Tong Yew Heng said.
“The NetLink Group’s future growth is driven by a clear strategy to tap opportunities in the residential, non-residential and non-building address point segments, underscored by the continued growth in data consumption. Going forward, we intend to provide our unit holders with regular and predictable distributions.”
At $0.81 per unit, the IPO was priced near the low end of the indicative range of S$0.80 to S$0.93. NetLink’s assets include 76,000 km of fibre cable, 16,200 km of ducts, and 62,000 manholes across Singapore.