Just days after filing the initial prospectus for the listing of its cable unit, Reliance Communications (RCom) has reportedly set the indicative price range at between US$700m and US$1bn.
The Indian mobile operator is looking to sell between 642.2…
Just days after filing the initial prospectus for the listing of its cable unit, Reliance Communications (RCom) has reportedly set the indicative price range at between US$700m and US$1bn.
The Indian mobile operator is looking to sell between 642.2 million and 757.6 million units of Flag Telecom on the Singapore stock exchange at a price range of US$1.09-US$1.32 per unit, reported IFR Asia citing an offer document.
This equates to a distribution yield of 9.5% to 11.5% for 2013 and gives Flag a market capitalisation of US$1.27bn to US$1.53bn, according to the publication.
The undersea cableco reportedly generated revenues of US$267.5m in the fiscal year ending March 2012, and RCom expects further increases over the next years, reaching revenues of US$308.8m in fiscal year 2014.
Standard Chartered, DBS Group, Industrial and Commercial Bank of China (ICBC) and Deutsche Bank are said to advise on the IPO process.
Faced with a US$7bn debt load, RCom has been looking to sell off several assets for the past few years, including its tower unit Reliance Infratel.
RCom acquired Flag for US$211m in 2004, about a year after the cable company emerged from bankruptcy protection.
