Vodafone is unlikely to float a portion of its New Zealand operation before the end of this year, and could in fact wait until several months into 2018 before it makes a move…
Vodafone is unlikely to float a portion of its New Zealand operation before the end of this year, and could in fact wait until several months into 2018 before it makes a move, according to a local news outlet.
The telco is most likely to opt for an April or May listing, Stuff.co.nz reported, citing unnamed industry and market sources.
Vodafone's plans to list became an open secret last month, the report noted.
Indeed, Stuff in September said that Vodafone was pushing forward with plans for the sale and speculated that it could seek to value the New Zealand business at around the NZ$2 billion (€1.2 billion) mark. However, it had no information on the size of the flotation.
At the time, it said an announcement could be imminent, but a month on and there has been no comment from the telco.
Citing an industry source, Stuff said that uncertainty about the result of last month's parliamentary election in New Zealand – the ruling National Party won the election but failed to secure a majority – and fierce price competition at the high end of the mobile market likely played into Vodafone's decision to push back a roadshow for institutional investors.
Institutional investors would take into account the risk of further price competition and lower margins when deciding whether or not to participate in an IPO, it said.