Thailand’s True Corp cuts down IPO expectations

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telco towersThailand’s second largest telecommunications company, True Corp, has indicated it may cut the size of the planned initial public offering (IPO) of its infrastructure assets to $1.9 billion from $3.1 billion, Reuters reported.

True Corp had originally planned to raise $3.1 billion from the listing, which would make it one the biggest IPOs in Asia in 2013. It wants to sell  infrastructure assets including towers and fiber-optic cable networks to the listed fund and lease them back.

However, it has to size down the assets because 4,500 of 7,000 of its telecom towers are, in turn, leased from CAT Telecom, Thailand’s state-owned telecom company that provides most or the basic telecom infrastructure in the country.

Anudith Nakornthap, the country’s Information and Communications Technology Minister, said the buy-back plan would be subject to the regulations of the state enterprises involved, while the targeted telecom towers would have to be valued. Thus, it’s not clear now what the final size of the fund will be.

True Corp had initially planned to include 13,000 telecoms towers in the IPO, including the 7,000 used by TrueMove which operates Thailand’s third-largest mobile network.

Raising money as quickly as possible is a priority for True Corp. It has plans to spend $470 million this year alone on expanding its 3G and 4G networks as rivals launch high-speed mobile services to gain market share from fast growing mobile data.

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Reading Time: 1 minute

Thailand’s second largest telecommunications company, True Corp, has indicated it may cut the size of the planned initial public offering (IPO) of its infrastructure assets to $1.9 billion from $3.1 billion, Reuters reported.

Reading Time: 1 minute

telco towersThailand’s second largest telecommunications company, True Corp, has indicated it may cut the size of the planned initial public offering (IPO) of its infrastructure assets to $1.9 billion from $3.1 billion, Reuters reported.

True Corp had originally planned to raise $3.1 billion from the listing, which would make it one the biggest IPOs in Asia in 2013. It wants to sell  infrastructure assets including towers and fiber-optic cable networks to the listed fund and lease them back.

However, it has to size down the assets because 4,500 of 7,000 of its telecom towers are, in turn, leased from CAT Telecom, Thailand’s state-owned telecom company that provides most or the basic telecom infrastructure in the country.

Anudith Nakornthap, the country’s Information and Communications Technology Minister, said the buy-back plan would be subject to the regulations of the state enterprises involved, while the targeted telecom towers would have to be valued. Thus, it’s not clear now what the final size of the fund will be.

True Corp had initially planned to include 13,000 telecoms towers in the IPO, including the 7,000 used by TrueMove which operates Thailand’s third-largest mobile network.

Raising money as quickly as possible is a priority for True Corp. It has plans to spend $470 million this year alone on expanding its 3G and 4G networks as rivals launch high-speed mobile services to gain market share from fast growing mobile data.

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