Singtel gets conditional nod for NetLink Trust IPO

Singtel has secured conditional approval to list its wholly-owned subsidiary NetLink Trust on the SGX as part of its obligations to the government under the state-owned Next Generation National Broadband Network (NG-NBN) project.

NetLink trust builds and operates the passive infrastructure for the NG-NBN. As a condition of Singtel winning the NG-NBN tender, Singtel agreed not to have effective control in NetLink Trust. In February, the company announced it has committed to regulator IMDA to divest its ownership to less than 25% by April next year.

The structural separation arrangements formed part of the IMDA’s open access requirements for the NG-NBN project.

Singtel said Singapore Exchange Securities Trading Limited (SGX-ST) has issued a conditional eligibility-to-list letter for NetLink Trust.

The listing will be contingent on market conditions, obtaining the required regulatory and other approvals as well as other prerequisites, Singtel said.

Once up and running, market watchers expect the IPO to raise at least S$2 billion, making it one of the largest offerings in Singapore in years. Singtel has appointed DBS Bank, Morgan Stanley and UBS to advise on the IPO, which could be complete as early as July, according to recent reports.