Nynex seeks to raise £400m in double listing

BY MARY FAGAN

Industrial Correspondent

Nynex CableComms, the second-largest cable company in the UK, is to seek listings on the London Stock Exchange and New York's Nasdaq market within the next few months. Nynex plans to raise £400m through the issue, valuing the company at about £1.5bn.

The decision follows the flotation of Telewest at the end of last year, which valued that company at £1.8bn. General Cable and Bell Cablemedia - in which Cable & Wireless has a 12 per cent stake - also plan London listings this year.

Nynex has already spent £500m of a £2bn investment programme which should be largely completed by the end of 1997. The company has licences to provide cable television and telephony in 16 franchises covering 2.7 million homes, of which almost two-thirds are in and around Manchester.

Eugene Connell, president and chief executive officer of Nynex CableComms, said that there was no pressure for a flotation from its parent, Nynex Corporation of the US. He said the company was keen to have the participation of UK investors in a young and rapidly growing industry.

Nynex has appointed SG Warburg and Salomon Brothers to co-ordinate the international offering, which is expected to be split evenly between London and New York.

Nynex is among the most aggressive of the UK cable companies. It has so far attracted 122,000 cable television subscibers and 99,000 telephony customers, and plans to offer services including home banking and video- on-demand over the wires by 1996/97.

Mr Connell declined to comment on when the operations might become profitable. "You are now looking at an infrastructure build with very large expenditure up-front. It will take us well into the 21st century," he said.

Nynex is planning a wide ranging trial of community schemes.