Motor racing-Ecclestone sees new opportunity for Formula One IPO

(Reuters) - Formula One's postponed flotation could be re-launched later this year, the sport's commercial supremo Bernie Ecclestone said on Wednesday.
"Last year I thought that the markets were not ready, but now it is getting more likely that there is an opportunity," the 82-year-old British billionaire told the official formula1.com website ahead of Sunday's Australian season-opener.
"In the next three months or so somebody will have to decide yes or no," he added when asked about a possible float towards the end of the year.
Ecclestone told Reuters last November that any initial public offering (IPO) was unlikely before 2014.

The owners of Formula One had been preparing a $3 billion IPO in Singapore last June but decided to hold off as global markets  tumbled and investor mood soured after Facebook's plunge in value following its flotation.
Private equity firm CVC, the sport's largest shareholder, has a stake of around 35.5 percent.
Some 30 percent of the business is owned by investment groups Blackrock, Waddell & Reed, Norges Bank and the Texas Teachers' pension fund.

This year's Formula One championship will have 19 races, one less than last year due to the postponement of a planned grand prix in New Jersey and the disappearance of the European Grand Prix in Valencia, Spain.
The German Grand Prix at the Nuerburgring was confirmed only at the end of January amid prolonged wrangling over hosting fees while a slot reserved for an unidentified European race in July has gone unfilled.

Ecclestone suggested Europe could see fewer races in future with other countries, such as Thailand and Mexico, seeking slots.
"The fact is that we are a world championship, not a European championship, so maybe we are going to lose a couple of European races because we are going to other parts of the world," he said.
"There are lots of countries knocking at our door and it is a case of finding the right places for Formula One."
Russia is due to make its debut next year with a race in Winter Olympics venue Sochi.

Singapore Press Holdings mulls property-trust IPO

--Singapore Press Holdings says it may list a real-estate investment trust

--SPH didn't give specifics on timing, size of IPO or assets to be listed

--Analysts say possible REIT could include Paragon Shopping Center

(Revises throughout, adds details and background) 

SINGAPORE--Singapore Press Holdings Ltd. , the city-state's largest publishing company, is considering listing its property assets in a real-estate investment trust, offering the latest sign that Singapore's listings scene is coming alive after a tepid 2012.

In a filing to Singapore Exchange on Sunday, the publisher said it hadn't decided which properties would be included in the REIT, and that the timing of any initial public offering would depend on market conditions and regulatory approvals, among other things. It also didn't reveal how big an IPO might be.

The filing comes as at least two other companies prepare for REIT listings in Singapore this year. And it follows the successful US$1.3 billion flotation last week of China-focused REIT Mapletree Greater China Commercial Trust (RW0U.SG), which was backed by Singaporean state investment company Temasek Holdings Pte.

Analysts said the success of the Mapletree deal could catalyze Singapore's IPO market, which last year saw around US$5 billion worth of IPOs pulled due to volatile markets and weak demand.

Singapore has relied on REITs and business trusts in an effort to keep up with rival Hong Kong, the top global IPO market from 2009 to 2011. Trust listings contributed more than half of the IPO proceeds in Singapore over the past five years.

SPH is considering an REIT listing as it faces declining revenue at its main newspaper and magazine business, which saw falling circulation and advertising income in fiscal 2012. In the year ended Aug. 31, SPH saw operating revenue from newspapers and magazines fall 1% to 1 billion Singapore dollars (US$800 million). The segment contributed nearly 79% of the group's overall operating revenue in the fiscal year.

Operating revenue from its property arm, meanwhile, climbed 14% to S$191.4 million, helped by higher rental income from its malls.

The company publishes 18 newspapers, including its flagship broadsheets The Straits Times and The Business Times, as well as magazines and books. It also runs outdoor advertising and events businesses, and its properties include shopping malls.

SPH has developed residential property but its real-estate business mainly comprises shopping malls. Analysts say an REIT listing would likely include the publisher's main retail asset, the Paragon Shopping Center in Singapore's prime Orchard shopping district. Independent appraisers estimated the mall, which SPH bought in 1997, to be worth S$2.43 billion as of August.

The company's other retail assets are Clementi Mall in western Singapore, acquired in 2010 and valued at S$598 million in August, and the Seletar Mall project, which is due to be completed next year.

At least two other companies are also planning to list REITs in Singapore. Overseas Union Enterprise, a Singapore-based developer of offices and hotels, could initiate an $800 million hospitality REIT IPO in the third quarter, while fellow developer Soilbuild is planning an industrial property REIT that could raise about $400 million, according to people with knowledge of these deals. 

Bankers say these companies could benefit from healthy investor demand for such listings, demonstrated by Mapletree's strong showing since its March 7 debut. As of Monday, its unit price had risen by as much as 15.6% from the IPO price.

IPO Troubles in Trust-Heavy Singapore

05 Mar 2013 06:31 MPST WSJ BLOG: IPO Troubles in Trust-Heavy Singapore

(This story has been posted on The Wall Street Journal Online's Deal Journal blog at http://blogs.wsj.com/deals.) By Chun Han Wong and P.R. Venkat Singapore's listings scene is roaring back to life with a $1.3 billion initial public offering by a China-focused real-estate investment trust. But nontrust-related IPOs continue to elude the city-state, even as neighboring bourses are gearing up for a range of billion-dollar deals. Elsewhere in Southeast Asia, companies from retailers to infrastructure firms are poised to cash in on rapid economic growth by launching large IPOs and secondary share sales. Singapore, despite its push to rival Hong Kong as an Asian listing hub, has a one-dimensional listings scene: It hasn't hosted any major nontrust IPOs since 2010. Its largest listing in two years--set for a Thursday debut--is a $1.3 billion China-focused REIT IPO by Mapletree Investments Pte. Ltd., the real-estate arm of Singaporean state investor Temasek Holdings Pte. Ltd. "The supply of IPOs is relatively low as the global economy is still weak...Competition [for IPOs] will intensify with other countries given that they are growing faster," said Ken Ang, an investment analyst at Philip Securities. Thailand, which reported 6.4% economic growth last year, will host BTS Group Holdings PCL's proposed $1.5 billion flotation for its elevated-train system in Bangkok. Over in Malaysia, where the economy expanded 5.6% in 2012, power company Malakoff Corp. Bhd. has plans for a $1 billion IPO. In Singapore, the government expects the economy to grow by 1% to 3% this year after a 1.3% expansion in 2012. Singapore has relied on REITs and business trusts to try to keep up with Hong Kong, the top global IPO destination from 2009 to 2011. Trust listings contributed more than half of the IPO proceeds in Singapore in the last five years and surged to 93% in 2011, when the city hosted its largest-ever IPO Hutchison Port Holdings Trust's $5.5 billion flotation. This trend is set to continue this year. Apart from Mapletree Overseas Union Enterprise, a Singapore-based developer of mainly offices and hotels, could initiate an $800 million hospitality REIT IPO in the third quarter, while fellow developer Soilbuild is planning an industrial property REIT that could raise about $400 million, according to people with knowledge of these deals. Although Singapore has a large, diversified investor pool and tough corporate-governance rules, it has lost out to neighboring governments' measures to deepen their capital markets. Backed by the government's push to list huge state-owned entities, Malaysia hosted $7.5 billion worth of IPOs in 2012, placing it fifth globally in terms of value after coming in 14th in 2011, according to data tracker Dealogic. Bankers say some $3 billion worth of IPOs could be launched in Kuala Lumpur this year, including deals by Malakoff and port-owner Westports Malaysia Sdn. Bhd. In Indonesia, private-equity firm CVC Capital Partners plans to sell up to $1.5 billion worth of shares in Matahari Department Store. Things could have been very different for Singapore, which saw some $5 billion worth of IPOs pulled last year because of volatile markets and weak demand. U.K. soccer club Manchester United ditched plans to list in the city-state, motor-sport group Formula One shelved a $2.5 billion flotation, and India's Reliance Communications scrapped a listing of up to $1 billion of its undersea-cable assets, among others. Bankers say some of these IPO plans could be revived if Mapletree's latest REIT listing goes well. But even so, Singapore's IPO scene will likely remain trust heavy. "Singapore was an early adopter of REIT and business trust legislation and the asset class has proved itself to be popular with a wide variety of individual and institutional investors," said Rupert Mitchell Citigroup's Asia-Pacific head of equity syndicate. "The sector's strong yield characteristics have played well in a low-interest-rate environment." Although REITs have won loyal followers thanks to steady yields, business trusts have been shunned by some investors because most have underperformed the market. Singapore hosts 30 REITs and property trusts with about $44 billion in total market value, a record since the government set up a legal framework for REITs in 1999.