CapitaMalls hopes to raise US$2b from IPO

Posted on | November 3, 2009 | No Comments



By REUTERS


SINGAPORE: CapitaLand’s Asian shopping malls unit is looking to raise about US$2 billion (US$1 = RM3.43) in its Singapore initial public offering (IPO), a move that will help boost the warchest of Southeast Asia’s biggest property developer.

CapitaLand will float a 30 per cent stake in its wholly-owned unit CapitaMalls Asia Ltd, which has 86 retail properties valued at around S$20.3 billion (S$1 = RM2.45) in Singapore, China, Malaysia, Japan and India.

The listing move comes at a time when the pipeline for new offerings is becoming crowded and a string of Chinese real estate IPOs have received a lukewarm response from investors.

Analysts said the listing of the unit will boost CapitaLand’s ability to buy and build more property assets in Asia.
CapitaLand wants China to account for 35-45 per cent of its assets from 28 per cent now, and is seeking to increase Vietnam’s share to 5-10 per cent of assets.

CapitaMalls said it will sell 1.165 billion shares at an indicative price range of S$1.98-S$2.39 a share, according to an email sent to potential investors, which was seen by Reuters.

“We like the stock that comes with the pan-Asia theme. The way it’s structured gives investors cashflows from the developed malls and upside from the greenfield projects,” said Neo Chiu Yen, equity research asia, ABN Amro Private Banking.

“But the pricing looks a bit ‘full’ to me. It won’t be cheap, but it should give investors some incentives to participate.”

Management roadshows are planned between November 3 and November 16 and pricing for the international tranche of the offering is due on November 16, the email said.

The Singapore public offer period is between November18 and November 23.

Listing will likely take place on November 25, the email said.

JPMorgan is the sole financial adviser, and issue manager with DBS. The two banks are also bookrunners with Deutsche Bank and Credit Suisse, according to the CapitaMalls prospectus, filed on Monday.


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Category: REIT/Property Investment

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