Reliance Com’s unit planning to get listed in Singapore

Reliance Com’s unit planning to get listed in SingaporeThe cable unit of the Reliance Communications Ltd is aiming to raise about $1.5 billion through an initial public offering (IPO) in Singapore, according to reports.

Anil Ambani's Reliance plans to sell 75 percent of FLAG Telecom through the IPO and get a valuation of up to $2 billion within the first half of the year, according to a report citing persons close to the matter. FLAG Telecom will be listed as a business trust in the stock market in Singapore.

The younger Ambani is aiming to reduce debt burden on the company, which has resulted in the shares of the company falling 38 percent in the year. The $1.5 billion IPO by FLAG Telecom will be the biggest in Singapore since March of 2010, showed data compiled by Bloomberg.

Reliance Communications had earlier announced that it would borrow $1.8 billion from a group of Chinese banks. The company will use the raised funds to payback some of its debts. The company had announced in September that it is selling a stake in Reliance's mobile- phone towers company.

"Reliance Communications continually works on various options to unlock value from its unique combination of global telecom assets for the benefit of its shareholders," a company spokesman said. The spokesman did not comment on the IPO.