Thailand-based telco True Corp is reportedly looking to raise US$1.48bn from its infrastructure fund spinoff.
About 4.76 billion shares in the True Telecommunications Growth Infrastructure Trust will be sold at Bt10 (US$0.31) each to generate a total…
Thailand-based telco True Corp is reportedly looking to raise US$1.48bn from its infrastructure fund spinoff.
About 4.76 billion shares in the True Telecommunications Growth Infrastructure Trust will be sold at Bt10 (US$0.31) each to generate a total of Bt47.6bn (US$1.48bn), according to IFR.
The fund is forecast to offer an 8.8% dividend yield for 2014, the report said. True is looking to retain an 18% stake in the fund, meaning the spun-off unit could have a market capitalisation of US$1.8bn.
Siam Commercial Bank is True’s financial adviser on the flotation. The bank is also reported to be the joint global coordinator for the IPO alongside Credit Suisse, while BofA Merrill Lynch and UBS are joint bookrunners, with Standard Chartered lead manager. The schedule of the offering is yet to be finalised.
True began the pre-marketing of the fund in November and this process is reportedly set to complete tomorrow.
Thailand’s third largest mobile operator is putting towers, its core fibre optic grid and various other infrastructure into the fund, and will then lease the assets back.
Proceeds from the flotation should repay part of True’s debt pile, which stood at Bt108bn (US$3.36bn) as of March.
