Shares in Tuas Ltd (ASX: TUA) jumped from the open following a company announcement. The Tuas share price is currently 5.81% higher at $1.64.
Tuas has been catching bids today after announcing its subsidiary, TPG Singapore, has been awarded additional 5G network spectrum by Singaporean authorities.
Why is the Tuas share price charging higher?
Tuas announced that in the recent "quantity stage" of the 2.1 GHz spectrum auction conducted by the Singaporean authorities, TPG Singapore was provisionally awarded 10 MHz of spectrum in the 2.1 GHz band for a price of $31.72 million.
The total spectrum will be awarded in 2 paired lots of 5 MHz. An assignment stage of the auction is yet to occur, per the release. This will determine the position of the lots within the spectrum band.
Moreover, the licence of the 2.1 GHz spectrum is 15 years in duration. Providers require the licence for standalone 5G network use. TPG Singapore "intends to move quickly to commence rolling out 5G equipment to make use of this spectrum."
Tuas is the 100% owner of TPG Singapore. That's after the latter was spun off from TGG Telecom Ltd when it merged with Vodafone Hutchison Australia.
The announcement comes amid the Tuas share price climbing 90% in the past 3 months. It reached a 52-week high, before blowing off some froth and settling at its current price.
This upward swing has some experts constructive on Tuas. For instance, portfolio manager at Wilson Asset Management Tobias Yao was recently quoted as saying, "The reason we like TPG Singapore is the fact that we think the value offering is very, very attractive."
Yao added that Wilson Asset Management expects Tuas to gain market share in Singapore and expand into other parts of Southeast Asia.
Speaking on today's announcement, Richard Tan, CEO of TPG Singapore, said:
We are delighted that we were able to secure this important 5G band which is well supported by the global device ecosystem. Our customers can look forward to very competitively priced 5G services when we embark on our network upgrade, commencing in the first half of 2022.
Tuas share price snapshot
In the past 12 months, the Tuas share price has gained 140%. It has rallied 118% just this year to date.
Over the past month, Tuas shares are up 12% and have started the week on a positive note.
Tuas shareholders are well ahead of the S&P/ASX 200 Index (ASX: XJO) return of around 10% in the past year.
