NetLink plays up connections

摘要

Broadband provider netlink trust is pitching its proposed S$2bn-$2.8bn (US$1.5bn-$2bn) Singapore Exchange IPO at a low yield, in light of its stranglehold on the city state's fibre-optic infrastructure. The wholly owned subsidiary of Singapore Telecommunications started pre-marketing the IPO last week. At US$2bn, it will be the biggest trust IPO in Singapore since Hutchison Port Holdings Trust's US$5.5bn listing in March 2011. The fibre network provider is looking at a dividend yield of 3.5%-5.0%, according to ECM sources with knowledge of the float. This is seen as aggressive relative to other Singapore business trusts, which trade at yields of 5.3% to 11%.