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Pacnet plans to raise $500m in IPO
24 February 2010
Private equity owned Pacnet, created from Asia Netcom and Pacific Internet, plans to raise $500m in an IPO for acquisitions and expansion
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Pacnet
Kong Kong
IPO
Asia Netcom
data centres
Ashmore Investment
Spinnaker Capital
Hong Kong-based submarine cable operator Pacnet will sell shares worth $500 million in an initial public offering in the fourth quarter. The company is planning to acquire companies in China and India, and may spend between $300 million and $500 million on acquisitions.
The company will build 10 smaller data centres in the next three years and three larger centres throughout the region. The larger centres, which it is calling “gravity centres” will cost nearly $250 million each and will be built in partnership with other major network users.
Pacnet, formed through the merger of Asia Netcom and Pacific Internet, received a network services provider licence from the Malaysian Communications and Multimedia Commission.
Pacnet’s shareholders are a group of private equity firms, led by Ashmore Investment and Spinnaker Capital. The company owns and operates a submarine fibre-optic cable network connecting Hong Kong, China, Korea, Japan, Taiwan, the Philippines and Singapore. GTB