Reliance Jio likely to launch IPO worth $100 billion, says CLSA

As per CLSA research report, Reliance Jio Infocomm is considering launching its initial public offering (IPO) for an enterprise value of approximately $100 billion. The composition of this offering is believed to be 33 per cent pre-IPO stake sales to 13 investors, including 10 per cent to Facebook and 8 per cent to Google in 2020.

Meanwhile, Jio Platforms has raised Rs 1. 52 trillion from several overseas investors, including Facebook, Google, Intel Capital, Qualcomm Ventures, and top private equity players such as Silver Lake, Vista Equity Partners, General Atlantic and KKR by offloading a combined 33 per cent stake. Also, the telecom business, Jio Platforms (JPL) houses RIL’s content/ apps, digital investments, and tech capabilities.

Further, CLSA believes that the government might slightly reduce mid-band 5G spectrum base prices in 2022. As per estimates of CLSA, a likely Jio IPO would be a sector valuation catalyst with Jio’s pre-IPO $20 billion deals valuation at 10x EV/Ebitda.