Posted by luxuryasiahome on November 24, 2009
Shares of CapitaMalls Asia will likely gain about 10 per cent on their debut on Wednesday, helped by strong demand from institutional investors keen to gain exposure to China’s fast-growing consumer market.
The listing is the latest in a string of share sales across Asia as companies look to take advantage of a rally that has lifted the region’s stocks by almost two-thirds this year.
Priced at 1.55 times book value, CapitaLand’s malls unit was valued above a sector average of 1-1.1 times book value, but sources involved in the IPO said orders from institutions far exceeded supply at the issue price of S$2.12 a share.
CapitaLand could have priced the IPO higher, CEO Liew Mun Leong said at an analyst briefing on Nov 17, but chose a lower price as the Singapore developer wanted to ensure a successful debut for CapitaMalls.
CapitaLand had earlier set an indicative range of S$1.98 to S$2.39 for CapitaMalls, which owns or manages 86 Asian shopping malls, including 50 in China. Most analysts expect the stock to trade near the top of the indicated pricing range on its debut.
CapitaLand, Southeast Asia’s biggest developer, sold about one-third of its shopping mall unit, raising US$1.8 billion in Singapore’s biggest IPO since SingTel listed in 1993.
DMG & Partners analyst Brandon Lee said CapitaMalls offered investors a chance to tap fast-growing consumer markets of Asia, including China, where retail sales rose 16.2 percent in October from a year ago.
‘CMA (CapitaMalls Asia) is a beneficiary of Asia’s unparalled consumer growth story, particularly China’s… The IPO price of S$2.12 appears undemanding versus our valuation range of S$2.42 to S$3.01,’ he said.
Besides increasing rents from its China malls as retail sales grow, CapitaMalls could also boost earnings by injecting some of its properties into real estate investment trusts (REITs), booking one-time gains while enjoying recurring income as it continues to manage the properties.
Mr Lee said he did not regard the CapitaMalls IPO as expensive, citing the average valuation of around 2.5 times for companies that own or manage retail properties such as Simon Property Group in the United States and Australia’s Lend Lease .
CapitaLand plans to use the funds raised to seek opportunities in Vietnam and expand its Ascott serviced residences business.
The firm, which will book a one-time gain of S$883 million (US$638 million) from the IPO, has also said it may pay shareholders a special dividend.
Source : Business Times – 24 Nov 2009
Showing posts with label CapitalMAlls Asia (CMA) $2.12 25Nov09. Show all posts
Showing posts with label CapitalMAlls Asia (CMA) $2.12 25Nov09. Show all posts
Tuesday, November 24, 2009
CapitaLand raises $2.8b from CapitaMalls Asia IPO
Posted by luxuryasiahome on November 25, 2009
Property group CapitaLand said that it raised $2.8 billion by selling 34.5 per cent of its retail arm CapitaMalls Asia (CMA) in its initial public offering (IPO).
Both the placement and retail shares were oversubscribed, and the company also released all over-allotment shares. In total, 1.34 billion shares were sold at $2.12 apiece.
The listing of CMA – which has a $20.3 billion portfolio of 86 malls in Singapore, China, Malaysia, Japan and India – is Singapore’s biggest IPO since Singapore Telecommunications raised more than $4 billion in 1993.
Analysts expect CMA shares to gain today on their debut, fuelled by demand from institutional investors keen to gain exposure to China’s fast-growing consumer market. More than half of CMA’s malls are in China.
In a note, DMG & Partners analysts Brandon Lee and Jonathan Ng gave a valuation range of $2.42- $3.01 for CMA’s shares. This is between 14 and 42 per cent above the IPO price of $2.12.
CapitaLand had earlier set an indicative range of $1.98 to $2.39 for the IPO, but later decided to price it below the mid-point of the range – a move that analysts said was to ensure that the stock trades well after it debuts.
CapitaLand yesterday reported demand of about 2.5 times for the placement tranche of 1.059 billion shares. An additional 174.8 million shares were over-allotted due to strong demand from investors.
Also, the public offer (excluding reserved shares) of 95 million shares was 4.9 times subscribed. In addition, all of the 11.7 million shares reserved for the directors, management, employees and business associates of the group were also taken up.
‘Upon completion of the IPO and assuming the full exercise of the over-allotment option, CapitaLand’s shareholding interest in CapitaMalls Asia will be reduced from 100 per cent to 65.5 per cent, and the IPO would have raised approximately $2.8 billion,’ CapitaLand said.
CMA chief executive Lim Beng Chee said that the company is well-positioned to ride on strong consumerism trends in Asia and will continue to grow its business in the region, with an initial focus on China and Singapore.
CMA marks the sixth entity within the CapitaLand group to be listed on the Singapore Exchange. CapitaLand has previously said that it could record a one-time gain of $883 million from this IPO.
Part of the proceeds will be paid out as a special dividend to the group’s shareholders. The company will also use some of its proceeds to invest in its residential and service residence business units. In particular, CapitaLand is looking at Singapore, China, Australia and Vietnam for growth for the overall group.
CapitaLand’s shares lost four cents to close at $4.11 yesterday.
Source : Business Times – 25 Nov 2009
Property group CapitaLand said that it raised $2.8 billion by selling 34.5 per cent of its retail arm CapitaMalls Asia (CMA) in its initial public offering (IPO).
Both the placement and retail shares were oversubscribed, and the company also released all over-allotment shares. In total, 1.34 billion shares were sold at $2.12 apiece.
The listing of CMA – which has a $20.3 billion portfolio of 86 malls in Singapore, China, Malaysia, Japan and India – is Singapore’s biggest IPO since Singapore Telecommunications raised more than $4 billion in 1993.
Analysts expect CMA shares to gain today on their debut, fuelled by demand from institutional investors keen to gain exposure to China’s fast-growing consumer market. More than half of CMA’s malls are in China.
In a note, DMG & Partners analysts Brandon Lee and Jonathan Ng gave a valuation range of $2.42- $3.01 for CMA’s shares. This is between 14 and 42 per cent above the IPO price of $2.12.
CapitaLand had earlier set an indicative range of $1.98 to $2.39 for the IPO, but later decided to price it below the mid-point of the range – a move that analysts said was to ensure that the stock trades well after it debuts.
CapitaLand yesterday reported demand of about 2.5 times for the placement tranche of 1.059 billion shares. An additional 174.8 million shares were over-allotted due to strong demand from investors.
Also, the public offer (excluding reserved shares) of 95 million shares was 4.9 times subscribed. In addition, all of the 11.7 million shares reserved for the directors, management, employees and business associates of the group were also taken up.
‘Upon completion of the IPO and assuming the full exercise of the over-allotment option, CapitaLand’s shareholding interest in CapitaMalls Asia will be reduced from 100 per cent to 65.5 per cent, and the IPO would have raised approximately $2.8 billion,’ CapitaLand said.
CMA chief executive Lim Beng Chee said that the company is well-positioned to ride on strong consumerism trends in Asia and will continue to grow its business in the region, with an initial focus on China and Singapore.
CMA marks the sixth entity within the CapitaLand group to be listed on the Singapore Exchange. CapitaLand has previously said that it could record a one-time gain of $883 million from this IPO.
Part of the proceeds will be paid out as a special dividend to the group’s shareholders. The company will also use some of its proceeds to invest in its residential and service residence business units. In particular, CapitaLand is looking at Singapore, China, Australia and Vietnam for growth for the overall group.
CapitaLand’s shares lost four cents to close at $4.11 yesterday.
Source : Business Times – 25 Nov 2009
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