June 22 (Bloomberg) -- Indian billionaire Bhupendra Kumar Modi, who has interests spanning telecommunications to financial services, said his holding company plans to raise about $1 billion in an initial public offering after scrapping a share sale in Dubai.

Singapore-based Spice Global aims to raise the money on another exchange in 2011, Modi, 60, said in an interview in the city-state. Spice Global dropped its planned $500 million Dubai IPO after the Dubai Financial Market General Index slumped 65 percent in the past year, compared with a 32 percent decline in the MSCI World Index.

The company has yet to decide on where it will hold the IPO, preferring an exchange that would allow shareholders to trade shares using mobile phones, said Modi, chairman of Spice Global, in the interview June 20 at his S$15.5 million ($10.6 million) penthouse that overlooks the construction of the Marina Bay Sands casino-resort in Singapore.

“We will go to the exchange that is mobile wireless,” Modi said. While the company is considering Singapore, the city- state’s exchange is “too small and will need a tie-up,” he added.

Modi said he plans to spend more than $2 billion to expand Spice Global, including opening 10,000 mobile-phone services stores that sell “digital wireless products,” in three years.

Modi, who earned 21 billion rupees ($435 million) selling his stake in Spice Communications Ltd. to Idea Cellular Ltd. last year, said he has a net worth of $1.5 billion to $1.6 billion and cash of $700 million to $800 million to spend.

Expansion

He offered 20 billion rupees in January for a controlling stake in Satyam Computer Services Ltd., the software company at the center of India’s biggest corporate fraud. Tech Mahindra Ltd. won the bid in April to gain control of Satyam.

Spice Mobiles Ltd., which Modi also runs, gained 56 percent this year, compared with the benchmark Sensitive Index’s 51 percent advance. The company, based in Uttar Pradesh, plans to offer its handsets, sold mainly in India, in Indonesia and Singapore in the coming months, Modi said.

Spice Global aims to expand across Southeast Asia, Central Asia and the Middle East, regions where more than 40 percent of the population is aged 14 years and below, Modi said.

“Population growth is taking place in this area,” he said. “You have to attract the young people.”

Spice Global plans to spend about $100 million on its entertainment business, which includes movie production and distribution worldwide, he said.

To contact the reporter on this story: Netty Ismail in Singapore nismail3@bloomberg.net

Last Updated: June 22, 2009 01:41 EDT