July 19, 2012 / 10:13 AM / 6 years ago

UPDATE 1-Reliance Comm unit extends S'pore IPO bookbuilding again-IFR

* Institutional bookbuilding extended to Friday -IFR

* Sovereign funds show interest in IPO -sources

* Listing now targeted for July 30 (Adds details)

SINGAPORE, July 19 (Reuters) - Reliance Communications’ undersea cable unit has extended the bookbuilding period for its Singapore business trust IPO, worth up to $1 billion, until Friday, IFR reported.

India’s Reliance Communications, controlled by billionaire Anil Ambani, is looking to raise funds to ease a debt load of $7 billion and a successful offering would be a major relief for the company which has seen its fair share of failed deals.

It is the second such extension in the bookbuilding for GTI Trust’s IPO, which opened on July 9 and was originally due to close on Monday. The deadline was later extended to Thursday.

IFR said a sovereign fund from the Middle East and a Singapore-based institutional investor have shown a significant interest in the deal.

“The orders came last night and there is a new momentum in the deal,” IFR, a Thomson Reuters publication, cited an unnamed source as saying.

A source familiar with the process told Reuters that the company had received confirmation from four sovereign wealth funds to invest a total of more than $250 million in the IPO.

Separately, Bloomberg cited three unnamed people with knowledge of the matter as saying Temasek and China Investment Corp had agreed to invest in the IPO.

A Reliance Communications spokesman declined to comment. Temasek also declined to comment, while CIC was not immediately available for a comment.

GTI 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, according to the term sheet, which makes the size of the base offering between $700 million and $1 billion.

The relatively smaller retail portion of the IPO will be launched on Monday and will close on Thursday, IFR said.

The listing date for the business trust is now targeted for July 30, IFR said. Originally, the trust planned to list on July 23 and this was later extended it to July 25, sources previously told Reuters.

GTI Trust has indicated a dividend yield of 9.5 percent to 11.5 percent for 2013, higher than Singapore-listed Hutchison Port Trust’s 8.4 percent and the 6.7 percent for PCCW Ltd’s HKT Trust.

Deutsche Bank, Standard Chartered, Singapore’s DBS and Industrial and Commercial Bank of China are the advisors for the public offering.

Shares in Reliance Communications were down 1.7 percent by 0842 GMT, underperforming the broader market which was up 0.6 percent. (IFR reporting by S. Anuradha. Writing and additional reporting by Devidutta Tripathy in NEW DELHI; Editing by Edwina Gibbs)

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