It could be S’pore’s largest IPO since SingTel; pricing aggressive, but take-up may be healthy
CapitaLand is seeking up to $2.78 billion from the listing of its retail arm CapitaMalls Asia (CMA). Some 1.165 billion shares are being offered at $1.98 to $2.39 apiece, according to e-mails sent to potential investors seen by BT.
This means that CapitaLand could raise between $2.31 billion and $2.78 billion. The developer intends to float 30 per cent of CMA.
If the pricing is achieved, CMA’s initial public offering (IPO) will be the largest so far this year. According to data tracked by Bloomberg, the 17 share sales in Singapore this year have raised an average $17.3 million.
In fact, if the offering is priced at the top end of the range, the share sale may well be the largest IPO in Singapore since SingTel’s initial offering in 1993, which raised more than $4 billion – a record that has yet to be broken.
CMA’s listing will give investors access to a company that manages 86 retail properties across Asia including Ion Orchard. The company’s net asset value is estimated to be about $5.3 billion.
CMA’s prospectus, which was filed with the Monetary Authority of Singapore yesterday, did not give details on the IPO’s size and pricing. In response to media reports quoting the price range and number of shares being floated, CapitaLand reiterated late yesterday that its decision to proceed with the IPO (as well as the size and pricing) will be subject to ‘investor demand and prevailing capital market conditions’, among other things. Continue reading
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