Malaysian mobile data service company U Mobile is back in the news only days after a Maxis buyout was reported. This time it is apparently planning a domestic initial public offering (IPO).
The IPO is expected to raise more than US$500 million as early as the first half of 2025, according to Reuters, quoting its own sources who suggest that U Mobile will file the IPO application to the regulator later this month, or in August.
The deal, if it proceeds, could be the largest IPO in Malaysia in nearly eight years, a deal that would value the firm at more than US$2 billion, according to Reuters’ sources. It’s been a long time coming: U Mobile has reportedly been planning to hold an IPO on the local stock exchange since 2014.
Proceeds raised will in all likelihood be used for mobile data network expansion, among other plans, though this has not been confirmed by the company, which says it will make announcements if there are any concrete developments.
The company also plans to be part of the tender to build Malaysia’s second 5G network.
Founded in 2006, U Mobile is Malaysia’s newest service provider. Figures are hard to come by but U Mobile is said to have crossed the 9 million subscriber mark last year. Maxis is just ahead at about 9.5 million subscribers, while the market leader, CelcomDigi, has about 20.4 million subscribers.
We reported last week that, according to Bloomberg, rival operator Maxis is in early-stage talks with U Mobile for a possible buyout deal to expand its network reach. However, the deal is apparently facing several major hurdles.
