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Rediff.com  » Business » Singapore IPO: RCom's unit files prospectus

Singapore IPO: RCom's unit files prospectus

July 05, 2012 18:30 IST

TelecomReliance Communications said on Thursday it has filed a preliminary prospectus with the regulator Monetary Authority of Singapore for listing its undersea unit, Flag Telecom, in Singapore.

RCom is looking at listing Flag Telecom through a Singapore business trust, Global Telecommunications Infrastructure Trust on the Singapore stock exchange.

The Monetary Authority of Singapore is Singapore's central bank and financial regulatory authority.

"The business trust, GTIT, has lodged a copy of the preliminary prospectus with the Monetary Authority of Singapore," RCom said in a statement on Thursday.

On June 12, 2012, the Singapore Exchange Securities Trading Ltd had granted an 'eligibility to list' to GTIT, subject to requisite conditions being satisfied.

The IPO is expected to raise about Rs 5,000-6,000 crore (Rs 50-60 billion) for

the company.

RCom on April 10, 2012 announced that it was evaluating a potential IPO and listing in Singapore of its subsea telecommunications infrastructure network business.

RCom had appointed Deutsche Bank, DBS Singapore, Standard Chartered and Industrial and Commercial Bank of China as bankers to the issue.

Flag Telecom was acquired by the then undivided Reliance Group for $207 million (less than Rs 1,000 crore) in 2003.

As part of the telecom portfolio of the erstwhile Reliance group, Flag Telecom later came into the fold of Anil Ambani-led group after the split between two Ambani brothers.

In recent past, RCom has been exploring various routes of raising funds, including selling stake in its telecom tower arm Reliance Infratel, a move that will help the company retire a major chunk of debt on its books.

As of March 31, 2012, the company has a net debt of Rs 35,839.3 crore (Rs 358.39 billion) on its books.

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