Is RCom planning $1.5 billion unit IPO?

NEW DELHI, INDIA: Telecoms company Reliance Communications is looking to raise about $1.5 billion through an initial public offering of its undersea cable unit in Singapore, a source with direct knowledge said on Wednesday.

The debt-laden company, controlled by billionaire Anil Ambani, is planning to list the unit as a business trust and may sell 75 per cent of its stake in the planned IPO, said the source, who declined to be named.

"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, but declined to comment on any planned IPO.

Bloomberg, which first reported the news, said Deutsche Bank is arranging the sale.