Tuesday, June 27, 2017

Netlink Trust - This Year's Biggest IPO Is Coming In July 2017

Netlink Trust IPO
Finally, the long-awaited Netlink Trust's IPO is more or less confirmed and its launch is just around the corner. Netlink Trust is the broadband arm of Singtel, as part of the infocomm regulator requirements, Singtel is forced to divest itself of more than 75 per cent of NetLink Trust before April next year. 

Following are some key information of the upcoming Netlink Trust's IPO:

Issuing units : 2.9 billions

IPO Price Range : 80 cents to 93 cents

Joint Issue Manager : DBS, Morgan Stanley and UBS 

To be listed on : Singapore Exchange (SGX) Mainboard

To be priced on : 7th July 2017 (Friday)

IPO Offer : 10th July 2017 (Monday), 5 PM to 17th July 2017 (Mon), 12 PM

To start trading on : 19th July 2017 (Wednesday)

Estimated net proceeds : up to S$2.69 billions

Use of the proceeds :
NetLink will use a portion of the IPO proceeds to buy Singtel’s broadband assets, with up to S$1.4 billion paid in cash and it will use 966 million units for the remainder of the amount due. NetLink will use another 40 percent of proceeds to repay a S$1.1 billion loan owed to Singtel.

Key businesses of Netlink Trust (source : The Straits Times):
NetLink Trust designs, builds, owns and operates the passive infrastructure for Singapore's Next Generation Nationwide Broadband Network (NextGen NBN), over which ultra-high-speed internet access is delivered throughout the island.

With this network, NetLink Trust is able to sell wholesale dark fibre services to Nucleus Connect, a StarHub subsidiary. Nucleus Connect manages the active infrastructure like switches and routers, and sells bandwidth connectivity to retail service providers (including Singtel, StarHub, M1 and MyRepublic) who sell the bandwidth with value-added services to end-users.

I am rather excited about this upcoming IPO for 2-folds, one is that I am expecting it to be sizzling hot and hopefully I am lucky enough to be part of it; secondly, I am vested with Singtel and hopefully there are some "by the way" good news from Singtel after the IPO (in the form of special dividend, for example).

What about you? Will you be interested in trying your luck on this IPO?



  1. Anyone happen to know the % of the dividends

    1. Projected Dividend Yield is 5.43% for 2018 and 5.73% per 2019


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