NetLink NBN Trust debuts on SGX

But its 2x oversubscription rate ‘wasn’t that impressive’.

NetLink NBN Trust (NBN), the sixth largest initial public offering (IPO) to enter the SGX Mainboard, opened under the stock code "CJLU" at 0.81 S-cents per share.

Within ten minutes of its debut, the company had over 80 million shares for trading volume.

NBN received two times oversubscription in the book running, but analysts viewed it as average for a large IPO.

CMC Markets analyst Margaret Yang Yan said, "Compared to previous IPOs, however, this ratio wasn’t that impressive. For example, Kimley was 8.3 times, Jumbo was around 8 times, UnUsUal was over 30 times."

NBN, with a market value of $3.2b, joined SGX's REITs and Business Trust cluster of 50 listings. The company, the lone operator of the passive fibre network infrastructure in Singapore, will also bring SGX's combined market value to $100b.