Nov 17, 2009
Capitaland to raise $2.4b
By Joyce Teo PROPERTY CORRESPONDENT
PROPERTY giant Capitaland is spinning off 30 per cent of its stake in CapitaMalls Asia (CMA) to raise about $2.4 billion in one of the biggest listings ever staged in Singapore.
The initial public offering of the huge Asian mall owner, developer and manager opens on Wednesday.
Retail investors will be able to buy into the IPO with shares priced at $2.12 each. The offer closes at noon on Nov 23 with trading expected to start around Nov 25.
The price - below the midpoint of an indicative range of $1.98-$2.39 a share - translates to an implied price-to-book value of 1.55 times.
It is 'rich enough to give CapitaLand a big windfall but yet a fair price to investors', said CapitaLand chief financial officer Olivier Lim.
CapitaLand could reap up to $883 million in pre-tax earnings after the offering, assuming its overallotment is exercised in full. It may recommend a special dividend after the CMA listing, which will still trails the SingTel float in 1993, which raised more than $4 billion.
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