Reliance GlobalCom IPO

Reliance is a company which can never keep calm. Now, they are attempting to venture out into the international markets. Reliance Globalcom, is planning an IPO or Initial Public offering in London a listing that will give it a market valuation of a whooping £6 billion.

As per the news, Anil Ambani, who is the head of ADAG or Anil Dhirubhai Ambani Group, has confirmed the plans.

Where will the Reliance GlobalCom IPO be listed?
Reliance Globalcom is based in London, and hence the listing has been planned for London Stock exchange.

Who are the book running lead managers or underwriters of the Reliance GlobalCom IPO issue?
It is learnt that Deutsche Bank and Goldman Sachs are going to advise on the Reliance GlobalCom IPO.

What is the business valuations and markets of Reliance GlobalCom IPO?
As per the news on Times, Reliance and its Indian peer Tata have emerged in recent years as the leading independent owners of the infrastructure that puts the world into world wide web - a global system of undersea fibre-optic cables that carry internet traffic and corporate data between continents.
The Indian companies are set to benefit from the global data surge after acquiring key assets at the bottom of the market. Tata bought Tyco Global Network, which has close ties to the US military, for $130 million in 2004. It will invest $2 billion (£1 billion) to augment the network.
Reliance Group, which purchased Flag, a UK-based competitor to Tyco for $207 million in 2004, is also preparing to invest a further $2 billion. It recently reorganised and rebranded its data infrastructure business as Reliance Globalcom.

What is the market valuation for broadband penetration?
According to the head of Reliance Globalcom, surging broadband penetration in emerging markets - particularly China and India - combined with the popularity of sites such as YouTube and mobile data services such as BlackBerry e-mail, are making undersea infrastructure investments viable for the first time in years. “The world has a gigabit system; we are building it a terabit [1,000 times faster] backbone,”

Industry estimates suggest that about 60 per cent of internet traffic travels underwater at some stage. That figure is set to rise as demand from Asia, the world's largest online community, for content hosted in the United States spirals upwards.

How about the international competition for Reliance GlobalCom business?
Google, which pays huge sums to move the data delivered for free by services such as Gmail, Google Earth and YouTube, revealed that it will also invest in what will effectively be its own private transpacific cable by joining the Unity consortium.
Unity plans to spend $300 million building a new link between Los Angeles and Tokyo that will feed further data tributaries to penetrate Asia.

Other happenings from the Reliance Group?
Reliance group recently came out with the Human Resources Services, recently concluded Reliance Power IPO and following Bonus issue. There is also some news about the elder brother’s Reliance Fresh IPO

Let’s see how this IPO from Reliance Globalcom performs in the London markets.

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