U Mobile is reportedly planning a domestic initial public offering (IPO) by the first half of 2025. According to Reuters, sources familiar with the matter say the move could raise over US$500 million (~RM2.34 billion). They added that the telco is set to file an IPO application with Bursa Malaysia either this month or in August, aiming for a valuation exceeding US$2 billion (~RM9.3 billion).
The report corroborates with Bloomberg’s from last week, which suggests a potential buyout of the orange telco by Maxis, one of its biggest rivals in Malaysia. Also mentioned in the article is a statement by U Mobile’s stakeholder, businessman Vincent Tan, who told the publication that the company has rejected the buyout offer in order to focus on filing an IPO at the end of this month.
Reuters notes that the IPO could potentially be Malaysia’s largest in nearly eight years if it proceeds, at least according to data from London Stock Exchange Group (LSEG). The funds raised will primarily support the expansion of U Mobile’s mobile data network. Meanwhile, sources familiar with the matter told the publication that the telco has been planning an IPO on the local stock exchange since 2014.
U Mobile declined to provide a statement to Reuters on the subject, saying that it is against its corporate policy to comment on market speculation. Similar to its response regarding the rumoured buyout by Maxis, a spokesperson told the publication that the telco is currently focused on preparing to bid for Malaysia’s second 5G network.
(Source: Reuters, via The Edge / New Straits Times)
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