Pacnet hires adviser for potential IPO

HONG KONG: Pacnet, operator of an Asia-wide telecom network, said on Monday it had appointed a financial adviser for a potential IPO, as it launched a new service aimed at boosting its business from financial clients.

"At this point in time we really can't talk about it," Pacnet chief executive officer Bill Barney told a media briefing when asked about the company's plans for an initial public offering.

"Legally we can't talk about it - that should give you a hint of where we are," he said.

He said Pacnet was looking at a number of locations for such a potential listing, including Hong Kong, where it is based, but would not be more specific.

Past reports have indicated the private-equity-backed company would like to raise around $1 billion through such a listing. Barney made his comments at an event where Pacnet rolled out a new service, called Lightning, billed as offering the region's fastest telecoms connections for market traders.

He said such clients accounted for 15-20 percent of Pacnet's revenue last year, but added that the number could eventually grow to about 25 percent following the launch of the new service.

The company traces its roots back to Asia Global Crossing, the high-flying network operator that went bust after the telecoms bubble of the late 1990s burst earlier this decade. It took on its current form in 2008 when it relaunched after combining assets with those of Pacific Internet.