Tag Archives: CapitaMalls Asia (CMA)

CAPITAMALLS Asia (CMA) is looking to raise up to $2.8 billion from what could turn out to be the largest initial public offering (IPO) here in more than a decade.

The wholly owned integrated shopping mall unit of property giant CapitaLand is to offer 1.165 billion shares at an indicative price range of between $1.98 and $2.39 per share, according to an e-mail sent to potential institutional investors by its sole financial adviser and joint bookrunner J.P. Morgan.

This would value CMA at a price-to-book ratio of 1.45 times to 1.75 times, the e-mail said.

Investor roadshows are on till Nov 16, with pricing due that day. The public offering will be launched on Nov 17 and will close seven days later.

Trading is expected to start on Nov 25.

CapitaLand announced early last month that it was listing its retail arm CapitaLand Retail, which it renamed CapitaMalls Asia.

The group sees tremendous potential in Asia’s shopping mall sector over the long term. Continue reading →

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 →