July 20 (Bloomberg) -- Global Telecommunications Infrastructure Trust, the undersea cable unit of Reliance Communications Ltd., said it postponed a planned $1 billion initial share sale in Singapore.
The company will "await supportive market conditions and easing of prevailing global uncertainties to proceed with the offering at an appropriate time in the future," it said in a statement. The trust was planning to sell as many as 758 million shares at $1.09 to $1.32 apiece, two people familiar with the matter had told Bloomberg earlier.
The initial public offering is the largest to be scrapped in Singapore since Manchester United delayed its plans to raise as much as $1 billion there last year. Manchester United this month filed an application for listing in the U.S. instead. GTI Trust had offered a yield of as much as 11.5 percent as it sought to attract investors in Singapore's weakest IPO market since 2009.
Reliance Communications, controlled by Indian billionaire Anil Ambani, is attempting to sell assets to reduce net debt that stood at 358 billion rupees ($6.5 billion) in March. GTI Trust owns four subsea cable systems that carry Internet traffic and data around the globe, according to a prospectus filed in Singapore on July 5.
Companies have raised $824 million in IPOs in Singapore this year, compared with almost $7 billion in the first half of
2011 alone, data compiled by Bloomberg show. In April, M&L Hospitality Trusts scrapped a plan to raise as much as $368 million in Singapore because of weak demand. The next month, Samvardhana Motherson Finance Ltd., an auto parts company, withdrew a $309 million IPO in India.
Reliance Communications shares fell 0.3 percent to 63.75 rupees at close in Mumbai today. They've declined 9 percent this year, compared with an 11 percent gain in the benchmark Sensitive Index.
Deutsche Bank AG, DBS Group Holdings Ltd., Industrial & Commercial Bank of China Ltd. and Standard Chartered Plc are arrangers to the GTI Trust offering.