By John Revill
ZURICH--Sunrise Communications Group AG's plan to launch the
biggest European telecoms initial public offering seen in recent
years won't be derailed by the Swiss franc's surging value and a
corresponding fall in the value of Swiss stocks, the company said
Tuesday.
Zurich-based Sunrise, Switzerland's second-biggest
telecommunications company by revenue, said it is setting its IPO
price in the range of 58 Swiss francs to 78 francs a share, with
the aim of raising 1.35 billion francs ($1.5 billion). The IPO
would be the largest for a European telecom since 2012, according
to Dealogic.
Sunrise said the price range implies a market capitalization for
the company of between 2.8 billion francs and 3.3 billion francs,
when its stock begins trading on or before Feb. 6.
Sunrise announced its decision to go public on Jan. 14, the day
before the Swiss National Bank abruptly ended its long-standing cap
on the country's currency at 1.20 francs to the euro. Since then,
the franc has gained nearly 17% in value against the euro while the
blue chip Swiss Market Index has declined nearly 10%, amid concerns
that Switzerland's many export-reliant firms will see their costs
surge.
Sunrise Chief Executive Libor Voncina told reporters on Tuesday
that the revaluation of the franc against the euro could have a
positive impact on his company, which has much of its debt
denominated in euros while revenue is denominated in the
strengthened franc.
The company had revenue of 2.02 billion francs in 2013.
Sunrise's Chief Financial Officer André Krausé said that shares
in Swisscom AG, Switzerland's only publicly traded
telecommunications company, haven't been hurt by the currency
swing.
Shares in Swisscom have risen more than 1% in the past 10
days.
Private-equity firm CVC Capital Partners, which has held a 90%
stake in Sunrise since 2010, will likely see its ownership decline
to around 35% as a result of the IPO.
Write to John Revill at john.revill@wsj.com
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