U Mobile, a Malaysian mobile service provider, is planning to raise around $500 million in an initial public offering (IPO) in Kuala Lumpur, reported Bloomberg.
The wireless carrier has asked banks for proposals to help with the potential share sale and the company is set to pick advisers soon for a listing that could happen as early as the end of 2020.
U Mobile, Malaysia’s fourth-biggest mobile operator, is set to join home improvement retailer Mr DIY and bubble tea chain Loob Holding in planning a listing in the country in the coming year. First-time share sales in Malaysia have rebounded and nearly tripled to $452 million so far in 2019, from $164 million for the same period last year. However, it is still short of the $1.72 billion of offering seen for the full year in 2017.
Wong Heang Tuck, U Mobile’s Chief Executive Officer, said, “U Mobile is in the process of planning an IPO and we are targeting to go public next year; however, the exact timing would be largely dependent on market conditions.”
Singapore’s Straits Mobile Investments is U Mobile’s biggest shareholder with a 35 per cent stake. Additionally, Temasek Holdings, Singapore’s state investment firm, holds Straits Mobile through a unit. Other shareholders of U Mobile include Malaysian tycoon Vincent Tan and the ruler of Malaysia’s Johor state, who hold 21 per cent and 11 per cent, respectively.