India's Jio completes $3.2 billion initial public offering subscription

en.Wedoany.com Reported - On October 23, Jio Platforms, the digital communications arm of India's Reliance Industries Group, closed the three-day subscription period for its initial public offering (IPO), with an offering size of approximately $3.2 billion. The company plans to issue 270 million new shares at a price range of 1,065 to 1,119 rupees per share. The final subscription multiple reached 22.19 times, with cumulative subscription amounts exceeding $77 billion, setting a record for IPO subscription amounts in India. The company is scheduled to list on the Indian stock exchanges on October 28.

The Jio Platforms offering launched on October 21 and was fully subscribed in less than two hours after opening to public subscription, with the subscription multiple reaching 3.16 times on the first day and rising to 5.57 times on the second day. On the final subscription day, qualified institutional investors' subscriptions reached 70.55 times their allotted quota, while non-institutional investors and retail investors reached 14 times and 2.72 times, respectively. The offering also set aside dedicated allotment quotas for existing shareholders of Reliance Industries and Jio employees.

Based on the upper limit of the price range, Jio Platforms is valued at up to approximately $108.3 billion. The company adopted a fresh issue of new shares for this offering. Reliance Industries had previously submitted a prospectus to regulators and set October 19 as the cornerstone investor subscription date. The next milestones set out in the prospectus documents are determination of share allotment results on October 26, transfer of shares on October 27, and official listing and trading on October 28.

Jio Platforms currently has approximately 533 million mobile communications users, and its telecommunications business contributes nearly 90% of the group's revenue. According to business data disclosed by the company, annual operating revenue is approximately $15.45 billion, with the telecommunications business contributing about 94% of profits. The company also operates broadband access, digital applications, home smart devices, and artificial intelligence services. Meta and Google are both existing investors, with Meta holding close to a 10% stake.

Akash Ambani, Managing Director of Jio Platforms, participated in the listing roadshow, introducing the company's mobile communications user scale, profitability, and 5G and artificial intelligence business plans to investors. The company is developing AI call summarization and voice transcription services supporting 12 Indian languages and plans to extend related features to its existing communications users. Akash has also served since 2022 as Chairman of its telecommunications operating company Reliance Jio Infocomm, where he is responsible for driving the development of its communications network and digital services businesses.