TeleBermuda International Ltd. -- which plans to compete with Cable & Wireless' international telecommunication services -- aims to raise more than $30 million through an initial public offering.

Proceeds from the IPO, which closes on August 23, will be used along with a $35 million planned debt offering to fund the company's start-up.

According to the prospectus released yesterday, company is to be listed on the Bermuda Stock Exchange at $8.50 per share.

The development stage company, first incorporated in January 1995, believes Bermuda can take advantage of emerging opportunities in international telecommunications and it also aims to make the cost of Bermuda's telecommunications services less costly.

The Bermuda Government licence the company acquired allows the company to be principly owned by non-Bermudians, but restricts it to no less than 20 percent of share ownership by Bermudians.

The company is offering for sale 3,630,084 common shares at $8.50 per share, seeking to raise $30,855,714, of which $1,996,546 (55 cents per share) will be used to pay the agents' fee. Of the remaining $28,859,025 available to the company, some $300,000 will be needed for IPO expenses.

It is envisaged that the remaining $28,559,025 will be combined with the proceeds of a planned debt offering of up to $35 million to fund the company's start-up.

The prospectus advises investors that there are no plans to declare a dividend for at least four years and the company does not project a net profit until at least 1999. But it calculates net income could be up to $12.5 million by the year 2001.

After start-up, net cash flows will be used to reduce bank indebtedness and develop further international telecommunications projects.

About $51 million will be needed to build the 1,311 kilometre fibreoptic cable system from St. David's to Truckerton, New Jersey.

The Government licence obtained by the company requires the building of the system, which is expected to be completed by October, 1997. The cable is to be used by the company in the provision of a number of advanced digital services.

AT&T Submarine Systems Inc. is to design the system at a cost of $45 million.

TBI expects that its affiliate TeleBermuda International LLC may obtain US landing rights for the cable from the US Federal Communications Commission during the third quarter of the year.

The company is prepared to start service by November, using existing equipment and/or a company-owned satellite earth station during the period the new cable, BUS-1, is being put in place.

TBI has applied to be listed on the Bermuda Stock Exchange, subject to the fulfilling of certain requirements by October 31, including the distribution of at least $18 million of common shares to a minimum number of public holders.

TBI also proposes to make Bermuda a value-added telecommunications hub, providing switching and transmission services for: emerging telecom service providers throughout the Americas, Europe, and the Caribbean; a turnkey portfolio of switched and transit services for affiliated companies; Europe/Caribbean/Latin American telecommunications traffic; and a potential new fibre optic cable linking the US with Southern Europe and possibly the proposed FLAG (Fibreoptic Link Around the Globe) and/or Africa One telecommunications projects.

Copies of the prospectus are now being made available through agents, First Bermuda Securities Ltd. and Toronto-based CIBC Wood Gundy Securities Inc.

Prospective investors have until August 23 to submit subscriptions.