Malaysian mobile network operator U Mobile is said to be planning an initial public offering (IPO) as it sets out on a MYR1.5 billion (USD470 million) network expansion programme, Reuters reports citing the company’s CEO Wong Heang Tuck. Although the executive declined to say how much the operator planned to raise via any listing, while also refusing to offer up a timetable for the IPO, he did note: ‘It depends on where the market is at that point in time… but we are on our way there.’ U Mobile is currently privately owned, with stakeholders said to include Malaysian billionaire Vincent Tan and Singapore Technologies Telemedia.
With regards to the expected impact of the expansion programme, U Mobile is said to be aiming to construct around 2,000 new 3G and 4G base stations to add to the 4,400 it already has in operation. Meanwhile, Wong said that U Mobile’s strategy of targeting younger users – which it intends to continue – will help it remain competitive, saying: ‘Our value proposition is that we are in the right market segment, especially where most of our subscribers are young. This is the growing market segment.’ The operator aims to increase its revenue by 50% as a result of its expansion plans.