GTI Trust IPO

Reliance seeks $1 billion from subsea cable unit spin-off

GTI Trust is selling 55% to 65% of its units to investors pre-shoe, and is offering a yield of up to 11.5%. Reliance Communications is retaining control of the remainder.
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A ship lays a telecoms cable under the sea
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<div style="text-align: left;"> A ship lays a telecoms cable under the sea </div>

India’s Reliance Communications is seeking to raise up to $1 billion from the listing of its subsea cable unit in Singapore, according to a source. The unit is listing as a business trust to reflect its utility-like cash flows and to enable it to pay higher dividends. It is scheduled to start trading on July 23.

Global Telecommunications Infrastructure Trust GTI Trust is offering 55% to 65% of its total number of units at a price between $1.09 and $1.32 each, which implies a dividend yield of 9.5% to 11.5% for the fiscal year to March 2013.

The yield looks generous compared to other business trusts in...

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