Singapore-based broadband services provider MyRepublic plans to launch an initial public offering (IPO) by the end of 2018 or early 2019 and is in the process of raising a S$100 million ($72.2 million) pre-IPO round.
MyRepublic did not disclose how much it plans to raise through the planned IPO but is eyeing a valuation of S$650 million after its Series C funding, which it expects to complete in the next 60-90 days. It is considering a listing on bourses in Hong Kong, Singapore and Australia.
No institutional investor has been identified to lead the round, according to MyRepublic CEO Malcolm Rodrigues. The firm is targeting an IPO in either Hong Kong, Singapore or Australia. It plans to use the IPO proceeds to finance its entry into new markets such as Malaysia, the Philippines, Sri Lanka, Myanmar, Cambodia and Vietnam.
MyRepublic is currently raising pre-IPO funds through the CLSA investment bank, using a mix of equity and debt instruments. While no lead investors have been identified, the firm is in discussions with a number of private equity (PE) firms and strategic investors. Rodrigues said the firm expected to get offers by the end of July and capital commitments by the end of August, with the round to close in September.
Of the S$100 million it plans to raise, MyRepublic plans to deploy up to S$60 million in developing an Indonesian fibre network while the remainder will be used for customer acquisition and marketing in Australia and New Zealand.
To date, the broadband firm has raised S$120 million, starting with S$3 million in seed funding in May 2014. The firm plans to offer mobile services in Australia by 2017-end after purchasing mobile bandwidth wholesale from an existing telecom operator.
Additionally, it plans to become a mobile virtual network operator (MVNO) in Singapore through the purchase of mobile bandwidth wholesale a Singaporean telecoms firm, with mobile service to launch in Q4 2017.
Rodrigues adds the firm no longer intends to pursue Singaporean telecoms operator M1, whose stakeholders are conducting a strategic review of their stakes.
In the run-up to its IPO in Hong Kong, Razer engaged in a number of M&A deals to further strengthen its position and diversify its revenue base. Asked if MyRepublic would pursue a similar strategy, Rodrigues said, “For our entire inorganic growth, we do want to explore that at some point, but we’re looking at this post-listing. Our organic growth is tremendous…and we’d rather not diffuse it with acquisitions.”
“If something came along that made sense and we had a financing partner, we’d explore that but it’s not in our plan right now. In the overall scheme of things, a $500 million firm isn’t that big. If you want to do acquisitions, you want to do it with scale, so it’s in our plan but it’s not pre-listing.”