U Mobile plans over $500 mln Malaysia IPO in 2025

Malaysian mobile data service company U Mobile is planning a domestic initial public offering (IPO) that is expected to raise more than $500 million as early as the first half of 2025, according to two sources with direct knowledge of the matter.

The Kuala Lumpur-headquartered company will file an IPO application to the regulator later this month, or August, for a deal that would value the firm at more than $2 billion, the people added.

The deal, if it proceeds, could be the largest IPO in Malaysia in nearly eight years, according to LSEG data.

Proceeds raised will be used for mobile data network expansion, among others, one of the sources said. The sources declined to be named discussing confidential information.

“Our corporate policy is to not comment on speculation as necessary announcements will be made if there are any concrete developments of that nature,” U Mobile said in a statement in response to Reuters’ query on Monday.

It added that it is preparing to respond and participate in the tender to build Malaysia’s second 5G network.

U Mobile has planned to hold an IPO on the local stock exchange since 2014.

If successful, U Mobile’s IPO would be Malaysia’s largest since South Korea’s Lotte Chemical Titan Holdings Bhd raised $879 million in 2017.
U Mobile’s listing would also help carry the current strong IPO market activity in Malaysia into next year.

Malaysia’s IPO market has been the best performer in Southeast Asia in the first half of this year, according to LSEG data.

The amount raised from Malaysian IPOs amounted to $637 million in the first six months of this year, up almost 24% from $514.3 million the same period a year ago, LSEG data showed.

Founded in 2006, U Mobile is Malaysia’s youngest telecommunication company with a network ready for 5G, according to its websites.

Its stakeholders include Malaysian tycoon Vincent Tan and ST Telemedia, a Singaporean strategic investor wholly owned by the country’s state investor Temasek.