UK-based MVNO The People’s Operator (TPO) is looking to launch an IPO on London’s junior market AIM in November.
Proceeds from the offering will be used to grow its online community to gain more customers, as well as build the infrastructure…
UK-based MVNO The People’s Operator (TPO) is looking to launch an IPO on London’s junior market AIM in November.
Proceeds from the offering will be used to grow its online community to gain more customers, as well as build the infrastructure required to expand into identified target countries, particularly the US, according to a securities filing.
TPO, which is being advised by FinnCap, declined to disclose the exact size of the offering or the pricing, although it confirmed that it would sell a minority stake.
The London-based company, which is backed by Wikipedia founder Jimmy Wales, donates 10% of each user’s bill to a charity of their choosing. Additionally, 25% of TPO’s profits go to charity through the TPO Foundation.
The company claims that its business model is still profitable as it relies less on traditional customer acquisition models, compared to other market players. Instead, it looks to secure new customers through a viral marketing system based on an online global community, to be developed by Wales who was appointed as TPO vice chairman in January and also serves as director of strategy and digital community.
Founded in November 2012, the London-based MVNO, which is reportedly valued at about £100m, has more than 10,000 UK subscribers and provides services using EE’s network.
Commenting on the IPO announcement, TPO chairman Andrew Rosenfeld said: “Our operating deal with Sprint Corporation along with Jimmy’s plans for viral online growth will, I believe, have a dramatic impact on revenues and thereby deliver significant returns to shareholders.”
TPO has recently signed an operating agreement with US operator Sprint Corp and aims to launch in the country in 2015.
According to the filing, the MVNO “intends to operate only in those countries that offer competitive wholesale mobile network prices”.
In January, Wales said the company would be looking to ink MVNO deals and was seeking partners and investors across the globe.
