SINGAPORE - Fibre optic cable owner NetLink NBN Trust has priced its initial public offering (IPO) at 81 Singapore cents a share, which works out to a dividend yield of 5.43 per cent, according to the prospectus, released on Monday evening (July 10).
At 81 Singapore cents a unit, NetLink NBN Trust will raise about S$2.3 billion, which makes it the biggest IPO here since Hutchison Port Holdings Trust raised US$5.5 billion (S$7.6 billion) in 2011.
NetLink's offer price is at the lower end of the range that the business trust had been seeking. During recent investor roadshows, NetLink had tested a pricing range of between 80 cents and 93 cents per unit.
The lower price gives IPO investors a higher yield and better chances of seeing some upside when the units start trading on the Singapore Exchange (SGX) mainboard on July 19.
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"Pricing is done to ensure that there is a diverse base of investors ranging from long-only asset managers, insurance companies and high net-worth individuals," sources told The Straits Times.
Upon listing, NetLink NBN Trust will have a market capitalisation of S$3.13 billion. Fewer than 60 stocks here have a market cap over S$3 billion, according to SGX StockFacts.