Reliance Communications (RCOM) has applied to list its submarine cable arm, Reliance Globalcom, on the Singapore bourse, hoping to raise USD1.5 billion through the launch of an initial public offering (IPO), reports Reuters, citing two unnamed sources with direct knowledge of the matter. The IPO is expected to ease the debt burden of the Indian telco, which currently shoulders USD6.9 billion of debt. According to the news agency’s sources, the IPO, expected to launch in Q2 2012, is unlikely to raise the desired USD1.5 billion, suggesting USD1 billion as a more realistic figure.
Standard Chartered, DBS and Deutsche Bank are expected to act as main advisers for the offer, with the Industrial and Commercial Bank of China acting as bookrunner, though RCOM is waiting for approval from the Singapore Stock Exchange before making its plans public.
Reliance Globalcom operates undersea cable networks in Europe, the Middle East and Asia. Its current operational cables are FLAG Atlantic-1 (FA-1), FLAG Europe-Asia (FEA), FLAG Falcon, FLAG North Asia Loop (FNAL) whilst a further three, FLAG Hawk, FLAG Eagle and Southeast Asia Japan Cable (SJC) are currently in development.