NetLink NBN Trust set to be biggest IPO in Singapore in six years with pricing at 81 cents

NetLink NBN Trust will have a market capitalisation of S$3.13 billion.
NetLink NBN Trust will have a market capitalisation of S$3.13 billion. PHOTO: NETLINK TRUST

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.

"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.