5 New Things I Learnt from the NetLink NBN Trust Media Briefing

NetLink NBN Trust’s initial public offering (IPO) kicked off on Monday.

The IPO has attracted interest as it is the largest IPO in Singapore since 2011 and the second largest IPO in Asia this year, after Korea’s NetMarble Games. The Motley Fool Singapore was invited for a media briefing. I attended and was able to learn five new things about the business trust:

1. NetLink NBN Trust is the sole nationwide provider of Singapore’s residential fibre network. As such, its business is focused in Singapore, and will be for the immediate future. The trustee manager’s chief financial officer, Lester Wong, said that NetLink NBN Trust chose to file its IPO in Singapore as its earnings is in Singapore dollars.

2. NetLink NBN Trust’s history can be traced back to a consortium called OpenNet. In 2008, the consortium was designated as a “network company” and tasked with rolling out the nationwide fibre network. During the briefing, NetLink NBN Trust said that the network rollout was supported by a $732 million government grant. The sizable investment makes the fibre network hard to replicate.

3. Singapore is not the only country which is implementing the Next Nationwide Broadband Network (NBN) initiative. Tong Yew Heng, the chief executive officer of the trustee manager, said that Australia, New Zealand, and the United Kingdom have been rolling out similar networks.

4. NetLink NBN Trust has 10 central offices which are located around Singapore. The offices play a key role as the primary ring of the fibre network fan out from these locations to connect Singapore.

5. The business trust considers itself as a late entrant in the non-residential space. NetLink NBN Trust began laying the fibre network in 2009, but Tong said that many commercial buildings were already served by Singapore Telecommunications Limited (SGX: Z74) or StarHub Ltd (SGX: CC3). NetLink NBN Trust has a 34% market share in the non-residential space, according to a study commissioned by the trust.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.