2degrees shareholders to explore possible IPO

25 Mar 2021

Trilogy International Partners has announced that, together with fellow shareholders, it is exploring a partial public listing of its New Zealand subsidiary Two Degrees Mobile (2degrees) on the New Zealand Stock Exchange (NZX) and Australian Securities Exchange (ASX) in the second half of 2021 or early 2022. The company, which owns a 73% stake in 2degrees, stressed that any such listing would be subject to market conditions and that no decision has been made to proceed with an IPO to date.

‘Equity markets are strong globally, telecom valuations are attractive, and the New Zealand dollar is at a multi-year high. This compelling macro backdrop, combined with the resilience, scale and growth of the 2degrees business, suggests now is an opportune time for the shareholders of 2degrees to explore a partial listing of the business,’ said Brad Horwitz, President and CEO of Trilogy and Chair of the 2degrees Board, on presentation of the company’s full-year 2020 results. ‘An equity event in New Zealand would raise primary capital to accelerate growth initiatives at 2degrees as well as enable Trilogy to reduce the debt it incurred while building the 2degrees business.’

2degrees continued to grow strongly in 2020 despite the COVID-19 pandemic, and now serves more than 1.6 million subscribers, including more than 500,000 pay monthly mobile customers and over 130,000 broadband customers. ‘Since launching in 2009, 2degrees has evolved into a full-service telecommunications provider serving all market segments via its national mobile network, while still retaining its challenger roots and fighting for fair via innovative products kiwis love,’ said Mark Aue, CEO of 2degrees, adding: ‘We have the infrastructure and industry leading service to do much more for New Zealanders. We’re very excited about the future and are investing even more in advance of our 5G launch later this year.’

New Zealand, Trilogy International Partners, Two Degrees Mobile (2degrees)