News
New Zealand mobile operator preparing for IPO that will raise up to NZ$150 million, sources say.
2degrees Mobile is planning to list shares in both Australia and New Zealand in order to raise as much as NZ$150 million (€90 million) to finance the completion of its network rollout, it emerged this week.
New Zealand’s smallest mobile network operator is planning an IPO that will bring in NZ$100 million-NZ$150 million, The Australian reported on Tuesday, citing unnamed sources.
The paper claimed that banks – including Deutsche Craigs, UBS, Macquarie Capital, Credit Suisse-First New Zealand Capital, and possibly Goldman Sachs – pitched to become joint lead managers of the initial public offering about three weeks ago.
U.S.-based venture capital firm Trilogy International Partners owns around 58% of 2degrees and may be looking to reduce its stake, it suggested.
2degrees brought Spark – then known as Telecom – and Vodafone’s mobile market duopoly to an end when it launched services in August 2009. Three years later it had signed up 1 million customers, but has not shared operational data since. Analysts put its market share at around the 25% mark.
Just over a year ago the operator moved to add fixed-line capabilities to its portfolio with the acquisition of broadband provider Snap for an undisclosed sum. It launched its first consumer broadband plans in July.
In June last year 2degrees announced the completion of stage two of its 4G network rollout, extending coverage to almost 60% of the country’s population. At the same date it said 3G network coverage stood at 97%, based on a network of 900 cell sites.
"We’re continuing our 4G rollout across the country," Mike Davies, the telco’s chief technology officer, said at the time.
