Carriers to Cash In on StarHub

Singaporean operator StarHub is planning an IPO on its home exchange that could raise hundreds of millions of dollars for BT Group plc (NYSE: BTY; London: BTA) and NTT Group (NYSE: NTT) and pave the way for other telecom IPOs.

The operator, which provides fixed, mobile, and pay TV services, filed its prospectus with the Monetary Authority of Singapore on Monday and is aiming to raise up to S$750 million (US$438 million) by floating between 25 percent and 30 percent of its stock, according to sources cited by Reuters.

State-owned Singapore Technologies Telemedia Pte. Ltd. (STT) is expected to hang on to its 49.8 percent stake, while BT and NTT could offload their respective 11.7 percent and 14.3 percent stakes. Depending on the price, BT, which has been offloading non-core assets for the past few years, could raise up to US$180 million and NTT up to US$240 million.

StarHub, which competes with incumbent Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY) and mobile operator MobileOne Ltd. (M1) (Singapore: MONE) -- which listed its shares in late 2002 (see M1 Bucks IPO Trend) -- recorded a net loss of S$45.5 million (US$26.6 million) from revenues of S$654.5 million (US$382 million) in the first half of 2004.

If the IPO is successful it could pave the way for other telecom listings in the Asia/Pacific region, including an anticipated IPO by China Netcom Corp. Ltd.; that of growing Chinese equipment vendor ZTE Corp. (see ZTE HK IPO OK'd); and the separate listing of some of Hutchison Whampoa Ltd.'s (Hong Kong: 0013) telecom assets. It's also possible that a buoyant investment market could even tempt Huawei Technologies Co. Ltd. out of its shell (see Is Huawei Edging Closer to IPO?).

— Ray Le Maistre, International News Editor, Light Reading

maxng 12/5/2012 | 1:20:38 AM
re: Carriers to Cash In on StarHub Starhub has been the 3rd mobile operator to operate in Singapore. At that time, when they launched their services, the regulator has a sudden change in the terms, bringing forward deregulated telecom market by 5 years.

There was a strong news that BT has already sold all their shares to STT.

Other than mobile business, there is nothing strong about this company who do not own any copper or fiber. They acquired the only cable company to have cable TV and broadband to fulfill obligation of mass rollout.

They definitely need the much needed capital from IPO to have some decent fiber rollout. Company has been in the red for 2 years.
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