MANILA, The Philippines—Smart Communications, considered the Philippines’ leading mobile-phone service provider, plans to go public next year and list one-third of its outstanding shares in the local stock exchange.
A wholly owned subsidiary of telecommunications giant Philippine Long Distance Telephone (PLDT), Smart is permitted by Philippine law to go public 10 years from the start of commercial operations or in 2004.
PLDT is expected to raise at least 30 billion Philippine pesos (US$600 million) from the planned initial public offering (IPO) of up to 30 percent of its stake in its wireless subsidiary.
Proceeds from the planned IPO will be used to finance PLDT’s convergence strategy that involves making full use of the existing landline business to go into the next-generation wireless and data business. Part of the proceeds will also be used to settle maturing loan obligations.
