ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Nikkei Markets

NetLink, Singapore's Biggest IPO Since 2011, Draws S$4.7 Billion In Applications

By Kevin Lim
Nikkei Markets
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; kevin.lim@nikkeinewsrise.com; +65 6331 6250
- Edited By Sumathi Vaidyanathan
- Send Feedback to feedback@nikkeinewsrise.com
- Copyright (c) 2017 Nikkei NewsRise Asia Pte Ltd.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more