Reliance Communications abandons IPO plan
Reliance Communications has abandoned plans for an IPO offering of its undersea cable unit, resulting in a share price drop of more than 3% this morning.
The company had hoped any possible IPO could raise up to $1 billion for Reliance Communications, which has been seeking to reduce its debt burden of $7 billion.
Its tower unit has been up for sale for almost two years and has been expected to draw in bids for up to $3 billion, but so far any possible sale has not come to fruition.
The company’s cable unit is listed as a business trust in Singapore, and was set to be listed for IPO, but Reliance Communications has said it will now wait for supportive market conditions before making an offering in the future.
It posted a surprise profit rise in March, after 10 straight quarters of profit decline.