By Kevin Lim
SINGAPORE (Jul 18) -- NetLink NBN Trust has attracted strong investor demand with applications totalling some 4.7 billion Singapore dollars ($3.4 billion) received at the close of the offer.
In a statement late on Tuesday, NetLink NBN Management, the trustee-manager of NetLink NBN Trust, said the trust's offer of 2.9 billion units at S$0.81 apiece received strong support from both institutional and retail investors.
The total subscriptions received represents a subscription rate of two times, the trustee-manager added.
At S$2.35 billion, the amount raised by NetLink NBN Trust's IPO is the biggest in Singapore since March 2011 when Hutchison Port Holdings Trust raised US$5.5 billion.
NetLink NBN Trust, which is structured as a business trust, owns the high-speed fiber network that is the backbone of Singapore's Next Generation Nationwide Broadband Network.
The Motley Fool, an investment advisory portal, says NetLink NBN Trust benefits from being the sole provider of nationwide residential broadband. But its rates are set by the Info-communications Media Development Authority, the industry regulator, which also imposes quality of service standards that the trust has to meet.
Singapore Telecommunications Ltd, which currently owns the network, will see its stake fall to 24.99% upon completion of the IPO.
Based on the offer price of S$0.81 per unit, the trust is expected to pay a distribution yield of 5.43% for the financial year ending March 2018 and 5.73% in the following year.
Trading of the units will commence at 3.00 pm Singapore time on Wednesday.
- By Kevin Lim; firstname.lastname@example.org; +65 6331 6250
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