Sunrise, a Swiss mobile telecom company, may have the biggest IPO for Switzerland since 2006, and comes amid the lifting of the cap off of the Swiss Franc and increased competition in the telecom sector. The IPO will be priced between 58 and 78 Swiss francs with a market value of 3.3 billion francs or $6.76 billion, according to Reuters. The trading will commence on or before February 6.
The company wants to raise money to cut its debt, and it is the second major operator behind Swisscom. There is talk that the IPO may lead to consolidation in the industry and a merger with Orange Switzerland which was purchased by Xavier Niels, head of NJJ Capital, and whose claim to fame was stirring up price wars in the cellular phone market.
CVC Capital Partner’s stake in the company will be reduced from 90% to 33%. Chief Executive officer of Sunrise, Libor Voncina, told Swissinfo, “The primary proceeds from the IPO will allow the company to substantially strengthen its balance sheet and exploit future growth opportunities.” Swisscom is providing significant competition against Sunrise and Orange Switzerland, as the former now offers a flat rate for service. The size of Sunrise’s IPO is expected to be between 17.3 million shares and 23.3 million.