Fibre optic cable owner NetLink NBN Trust has priced its initial public offering (IPO) at 81 cents a unit, making the $2.3 billion offer size the biggest seen here in six years.
NetLink NBN’s IPO comprises a public offer of 185 million units, and a placement tranche of 2.7 billion units that is believed to be two times subscribed.
With an offer price of 81 cents per unit, IPO investors can expect an annualised dividend yield of 5.43 per cent for the period to March 31 next year, and a 5.73 per cent yield the year after that.
NetLink NBN had tested a pricing range of between 80 cents and 93 cents per unit during recent investor roadshows. The offer price announced yesterday is at the bottom end of that range, but chief executive Tong Yew Heng said the price is where he would like it to be.
“We had a very strong reception (and) we have attracted a very diverse mix of high-quality investors,” Mr Tong said yesterday.
Mr Vijay Vaidyanathan, head of South-east Asia capital markets at Morgan Stanley, said the IPO was priced for “positive after-market performance”, adding: “Keep in mind that this is a truly large transaction.”
NetLink…