SINGAPORE Singapore Telecommunications Ltd (STEL.SI) confirmed on Thursday it has appointed DBS Group Holdings Ltd, Morgan Stanley and UBS Group AG to handle the planned initial public offering (IPO) of its broadband subsidiary NetLink Trust.
Singtel Group CEO Chua Sock Koong said Southeast Asia's largest telco was laying the groundwork for the IPO but it was too early to say how much the offering could raise.
"We have started preparations for the divestment. We are planning to do it by way of an initial public offering," she said at its results briefing on Thursday.
IFR, a Thomson Reuters publication, in November reported Singtel had tapped the three banks to manage the IPO of up to $2.5 billion. The IPO was expected to take place in the second or third quarter of 2017, IFR said, citing people close to the deal.
A Singapore regulator has given Singtel until April 2018 to reduce its stake in NetLink Trust to 25 percent from 100 percent, as a condition for buying the subsidiary in 2013.
Chua did not give a timeframe for the IPO but said Singtel, whose largest shareholder is state investor Temasek Holdings Ltd [TEM.UL], had every "intention of meeting" the April 2018 deadline.
On Thursday, Singtel reported a 2 percent rise in its net profit for the third quarter ended in December and maintained its outlook for the year.
(Reporting by Aradhana Aravindan; Editing by Randy Fabi)