India's Reliance Communications Ltd has set an indicative price range for the Singapore initial public offering of its undersea cable unit that could raise as much as $1 billion and help the parent reduce its debt load, IFR Asia reported on Monday.
Reliance Communications, controlled by billionaire Anil Ambani, is looking to raise funds to ease a debt load of $7 billion as of March. It has been unsuccessful in several attempts to raise money by selling assets.
Global Telecommunications Infrastructure Trust (GTIT), which is structured as an business trust, plans to sell between 642.2 million and 757.6 million units at a price range of $1.09 to $1.32 a unit, IFR said. This translates to a distribution yield of 9.5 percent to 11.5 percent for 2013.
The size of the base offering ranges from $700 million to $1 billion, according to an offer document seen by IFR.
The stake of sponsor Reliance Globalcom, a wholly owned subsidiary of Reliance Communications, will be between 25 and 37 percent after the issue.
The offer opens on Monday and will close on July 16. Listing is targeted for July 23 and the listing currency is U.S. dollars.