Croesus Retail Trust Prices Up to US$300M Singapore IPO at S$0.93/Unit

Croesus Retail Trust Prices Up to US$300M Singapore IPO at S$0.93/Unit - Sources

(DJ) SINGAPORE--Croesus Retail Trust, a real-estate investment vehicle backed by Marubeni Corp. (8002.TO) and Daiwa House Industry Co. (1925.TO), has priced its planned initial public offering at 93 Singapore cents (75 U.S. cents) per unit, people with knowledge of the deal said Wednesday, setting up a flotation worth about US$300 million in Singapore.

The deal would be Singapore's second-biggest IPO this year, after Mapletree Investments Pte. Ltd.--a unit of Singaporean state-investment firm Temasek Holdings Pte. Ltd.--completed in March a US$1.3 billion offering for a China-focused real-estate investment trust.

Croesus Retail Trust, which would own Japanese shopping malls in its portfolio, could file its preliminary IPO prospectus to the Singapore central bank later Wednesday, before starting roadshows Thursday, the people said.

The trust had revived its plan for a Singapore listing in recent weeks, after shelving it in November amid weak market conditions and tepid investor demand.

Its fresh push for a listing comes after stock markets improved worldwide, especially in Southeast Asia, leading to companies like Croesus renewing equity-raising plans. Recent successes in share sales by other companies in the region have also been supporting sentiment.

If Croesus' IPO is successful, it would become the first Japanese company focused on retail property to list in Singapore, and the second Japanese company after Saizen REIT (DZ8U.SG), which listed its residential properties in a 2007 share sale that raised about S$197 million.

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.

Global Premium Hotel Limited

Download the Prospectus here

Global Premium Hotel Limited

Offer Price: $0.26
Offer Size: 450m new shares
Public Tranche – 13m shares
Placement Tranche – 437m shares
NAV per share (post-IPO): S$0.2897
Historical PE: 7.5x (FY10)
Market Cap (post-IPO): S$260m
Open: 19 Apr 2012
Close: 24 Apr 2012, 12.00 noon
Trading: 26 Apr 2012, 9.00 a.m. (on “ready” basis)

Global Premium Hotel Limited operate one of Singapore’s largest 

chains of hotels with 23 hotels, of which 22 are operated under our 

“Fragrance” brand and one hotel under the “Parc Sovereign” brand. 

GPH provide economy-tier and mid-tier class of accommodation with

1,738 rooms in Singapore and own all our hotels save for Fragrance

Hotel – Elegance. As at 31 October 2011, the market value of all the

22 hotels which GPH own amounted to S$747.6 million.

The company is principally engaged in the business of developing and

operating economy-tier to mid-tier class hotels. The established track 

record  and reputation of providing affordable accommodation has led to

“Fragrance” brand of hotels becoming well recognised in the local 

and regional hospitality industry. Most of the hotel property assets and

 hotel operations are strategically located in the city or city-fringe areas.

Over 85% of the 22 hotels owned are on freehold land. The hotels are

fairly new, with half being in operation for five years or less.

The company will raise about S$112.1 million from the listing
of shares and they will use the net proceeds as followed:

(a) approximately S$75 million will be Partial repayment of the 

Purchase Consideration
(b) approximately S$30 million will be Development and expansion of

 hotel business and operations in Singapore and overseas
(c) approximately S$7 million will be Working capital purposes

Global Premium Hotel Limited is actually a spin-off from its parent,

Fragrance Group which is also listed in SGX and will remain as the

major shareholder after the listing. The company intend to distribute 

at least eighty per cent. (80%) of net profit after tax to Shareholders

for FY2012, as they wish to reward our Shareholders for participating in

our Group’s growth. According to Euromonitor International:
i) Singapore’s inbound tourist arrivals are expected to increase by 2.7% p.a.

during 2011-2015 to reach 21.9m trips by 2015; and
ii) Retail value of Singapore hotel accommodation is expected to increase

by 50% from an est. S$4b in 2011 to S$6b in 2015
According to the Singapore Tourism Board, for the first two months of this 

year, the Revenue per Available Room (RevPAR) of Singapore hotels has

increased by 19% YoY to S$225, according to the Singapore Tourism Board.

The hotel chain has grown over the years, with 5-year CAGR of 13.9%

 and 10.9% for the number of hotels and rooms respectively. It also 

achieved growth in the average occupancy rate from 76.9% to 89.4% 

between 2008 and 2010. GPH’s revenue for FY10 was S$44.2m, 

demonstrating a 2-year CAGR of 9.4%. 9M11 revenue was at S$38.9m, 

up 20% YoY. GPH’s gross profit margins for FY10 (ended Dec 2010) and 

9M11 were both at 88.3%. Net profit margins for FY10 and 9M11 were 44.9%

 and 44.5% respectively.

It is very interesting to know that the company is actually listed at a discount

to its NAV and not like many others listed at a huge premium over it.
Although it can be deduced that most of the company's asset are the hotels
and the land it owned and so it is subjected to varied valuation at different time,
but I still like the fact that we are getting the stock at a discount right now. 
Also, another thing worth mentioning is the average price that the major 
shareholder Fragance Group actually "paid" for the share at 25cts and we as
a new shareholders can get the share at 26cts. That is only a single cent above
the major shareholder and this will also provide a good support to the share price.  

Just for comparison purpose, Bumitama's post-IPO NAV is 32.9cts and the 

new shareholder are paying 74.5cts which is a premium of 56%. The major

shareholder's average price per share are 4 and 2.6cts respectively and

the public pay the IPO price of 74.5cts

Civmec listed at 40cts and its post-IPO NAV is 12.7cts The major shareholders

pay as low as 4cts to a high of 23.4cts for the shares and public pay 40cts.

Get the picture?

When I look at the not-final prospectus in the comment stage, I wasn't really 

impressed by what I read and thought of giving the IPO a miss. But I was wrong, 

when I read the final prospectus again, I was sold and I believe that this a great

opportunity to own a stock that is likely to grow with the nation's progress and 

the influx of tourists and foreigners. With 13 million shares for public application,

the chances of getting the share is reasonably high and I will "show-hand" to

apply for it. If I manage to win the lucky draw, I will hold the stock for a 50-100%

profits considering the dividend and capital appreciation. 

Take note that I am not saying that the stock will surge 50-100% on its debut but

I will keep the stock until that level. This is just my view but I believe that given 

its business potential and prospect, it is a future take-over target, and I totally 

won't be surprise if it happen this way. But this is just my crystal-ball reading, 

so take it with a pinch of salt.

Source: Global Premium Hotel Limited IPO Prospectus, IPO Fact Sheet
by OCBC

Civmec Limited

To download a copy of the prospectus

Civmec Limited

Offer Price: $0.40
Offer Size: 51m new shares + 50m vendor shares
Public Tranche – 2.0m shares
Placement Tranche – 99m shares
NAV per share (post-IPO): S$0.127
Historical PE: 23.9x (FY11)
Market Cap (post-IPO): S$200.4m
Open: 5 Apr 2012
Close: 11 Apr 2012, 12.00 noon
Trading: 13 Apr 2012, 9.00 a.m. (on “ready” basis)

Civmec Limited is an Australian-based integrated
multi-disciplinary construction and heavy engineering
services provider to the oil and gas, mining and other
industries, such as the infrastructure, utilities, chemical
and power industries. The company provide heavy
engineering and other services including fabrication,
site civil works, pre-cast concrete and maintenance services.

The company will raise about S$18.1 million from the listing
of shares and they will use the net proceeds as followed:

(a) approximately S$6 million will be committed for Building of office
 — relocation to larger premises
(b) approximately S$3 million will be Investment into additional
fixed assets for expansion into SMP
(c) approximately S$9.09 million will be Working capital/provision
of performance and warranty guarantees


Based on the offer price of 40cts, Civmec with an NAV of just
12.7cts will have a 214.4% premium of Invitation Price per Share
over the Adjusted NAV per Share. This is a very rich valuation
of the stock offer price. And the Historical PE of 23.9x is also
reasonably high.

This IPO is consider much muted than its previous 2
IPO in Cordlife and Bumitama and there isn't a lot
of media coverages and reports on it. Maybe because
it is just a significantly smaller listing. Given such a high
valuation, will Civmec still perform when it debuts on this Friday?
Yes, I believe it should still have a decent performance base
on the fact that there is a "oil and gas" component in its business.
Nowadays, anything dealing with it seems to be in the limelight
and Civmec will be the same.There is only 2 million for public
application and the chances  of getting it is like playing 4D and
Toto, but nevertheless I will still risk my $2 application fee.
Do take note that I feel that the stock is "expensive" and I will
take profits if it is above the 50cts region. 

Source: Civmec Limited IPO Prospectus, IPO Fact Sheet
by UOB

Bumitama Agri Limited

To download a copy of the prospectus,
please do it here.

Bumitama Agri Limited

Offer Price: $0.745
Offer Size: 273.334m new shares + 24.236m vendor shares
Public Tranche – 15.0m shares
Placement Tranche – 157.737m shares
Cornerstone Tranche – 124.833m shares
NAV per share (post-IPO): Rp2,342 (Equivalent to S$0.328)
Historical PE: 15.0x (FY11)
Market Cap (post-IPO): S$1.309b
Open: 4 April 12
Close: 10 April 12
Listing: 12 April 12, 9.00am

Bumitama Agri Limited will join the current already-listed
palm-oil related peer like Wilmar, Golden Agri, Indo Agri,
First Resources, Mehwah, Kencana Agri and Global Palm
in SGX this coming Thursday. The company is a pure
upstream oil palm plantation player with operations in
Indonesia, mainly Central Kalimantan, West Kalimantan
and Riau. The company has a total landbank of 191,948ha,
comprising 119,162ha (62%) of planted area and 72,786ha (38%)
of uncultivated land available for new planting. Bumitama
has a young age profile of 5 years for its planted area, and
only 28% of its total planted area is at the prime age.
Currently, it owns and operates five crude palm oil (CPO)
mills in Kalimantan and one in Riau, with a total fruitfresh
bunch (FFB) processing capacity of 2.07m tonnes every year.

The company will raise about S$195.2 million from the listing
of shares and they will use the net proceeds as followed:

(a) approximately S$142.0 million will be committed for capital
expenditure for the expansion and development of our existing
uncultivated land bank and oil palm plantations;
(b) approximately S$12.6 million to repay the Shareholder Loans,
where the majority of the loans were used to increase and
consolidate our shareholding in our subsidiary, BGA, as part of
the Restructuring Exercise;
(c) approximately S$27.9 million to finance our share of the capital
expenditure of subsidiaries under SNA and BAS for cultivation;
and
(d) the balance of approximately S$12.7 million for our working
capital needs.

It is worthy to note that Oakridge, a subsidiary of Malaysia-listed
IOI will hold 30.4% of Bumitama and Asdew Acquisitions Pte Ltd,
Hwang Investment Management Berhad, Target Asset Management
Pte Ltd, UOB Asset Management Ltd, Value Partners Hong Kong
Limited and Wii Pte Ltd (a wholly owned subsidiary of Wilmar
International Limited) will be the cornerstone investor.

At 74.5cts, Bumitama will be listed at a PE of 15.2x for FY 2011
and Price/Book of 3.7 times and gearing of 0.8 times, this is rather
high valuation. Most of its peers are trading at lower valuation
now and I don't see a favourable trading condition for the company
pass the honeymoon period. Just to give an example of what
happened to its last 2 peers listed, Global Palm, a much smaller
producers listed at 46cts and it never see this price again after
listing and is now hovering around half of its IPO price around 23cts.
Mewah listed at $1 and is also trading around 50% of the IPO
around 51.5cts I am not saying that Bumitama will definitely perform
as there are other peers like First Resources and Indo Agri who are
soaring high. I am just saying that Bumitama is listing at a notably
higher and valuation. 

I feel that the stock is priced at a rich valuation but since this
is only the 2nd IPO this year and looking at Cordlife's debut,
we can expect the same reception for the stock as well.
At this price, I will take profits within the first few days of
trading and will not hold on to it for long until I see "value"
in the company again. 
My personal recommendation is to Subscribe for the public
offering with a profit potential of 20-25% from the share.
With 15 million shares for public offering, the chances of getting
the stock is significantly higher and it is worth the punt on the stock.

Source: Bumitama Agri IPO Prospectus, IPO Fact Sheet
by UOB, Straits Times.