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07-02-2014, 12:26 PM
(This post was last modified: 07-02-2014, 12:28 PM by specuvestor.)
(06-02-2014, 10:01 PM)Layman A Wrote: On a serious note, big brand doesn't automatically mean they are safe to invest. Large company with big names can also go bust if mismanage.
Go see how Hutch port has performed since IPO to read between my lines
Both are well known and Lotte likely to be US$ listing I guess. Not going bust or discovered as fraud may not be much consolation to the investors
(06-02-2014, 06:28 PM)felixleong Wrote: SGX the land of reits~ lol
Agree... everyone trying to ATM here... I'm just glad that Man U and F1 didn't get to list here, else I'll be embarrassed to call myself a Singapore investor
Lotte at least not that embarrassing
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Lotte is late to the game, and investors are now asking for more...
DJ Lotte Shopping Delays Singapore IPO of Mall Assets -- Update
By P.R. Venkat and In-Soo Nam
South Korea's Lotte Shopping Co. has postponed a Singapore initial public offering of shopping mall assets that was expected to raise up to US$1 billion after investors demanded a lower price, people with knowledge of the deal said Tuesday.
Lotte had planned to offer a yield of 6%-7% but investors, who buy shares in real-estate investment trusts primarily for the dividend yield, were seeking more than 7%, which the company wasn't comfortable paying, one of the people said. The listing has been delayed until the second quarter, they said.
Investors' demand for a lower price--or higher yield--reflect the challenging environment for Lotte Shopping and others planning initial public offerings of income-producing assets now that the U.S. Federal Reserve has begun to wind down its monetary stimulus program.
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Ref: Dow Jones Newswires
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PUBLISHED MAY 03, 2014
Korea's Lotte defers S'pore Reit IPO
SECOND IN A WEEK
Lotte Shopping's postponement of Singapore IPO follows the cancelling of WH Group's Hong Kong listing early this week. - PHOTO: BLOOMBERG
Seoul
LOTTE Shopping Co Ltd said it is postponing an up to US$1 billion real estate investment trust (Reit) listing in Singapore due to unfavourable market conditions, the second large initial public offering (IPO) to be pulled in Asia this week.
Volatile equity markets this year have helped undermine sentiment for some of the region's less attractive listings, but Asia-Pacific IPO markets as a whole are still expected to have an upbeat 2014. Issuance for the year so far has doubled to US$15.4 billion over the same period a year earlier.
"People are just being more tactical," said Keith Pogson, managing partner for financial services at consultancy EY in Hong Kong. "If we can see sensible valuations, where investors believe they can get some safety in terms of rewards for taking the IPO risk in getting involved, I think we will see plenty of deals flying out the door."
Lotte Shopping's postponement follows the cancelling of Chinese pork giant WH Group Ltd's Hong Kong IPO, even after it cut the offer size by two-thirds to up to US$1.9 billion. In addition to market volatility, rich valuations and negative publicity over executive compensation also helped scupper the deal.
The operator of South Korea's largest department store chain said it may reconsider an IPO for the Reit if market conditions improve, but is currently looking at a sale-and-lease-back deal through a local public real estate fund as an alternative.
The MSCI Asia ex-Japan stock index has been on a roller-coaster ride for much of the year, losing as much as 7 per cent in early February but recovering in March. Among Asian IPO markets, Singapore in particular has struggled in recent years as most big-ticket listings in Asia opt for Hong Kong where there is more robust demand from Chinese and international investors.
Reit listings had been one of the few bright spots for Singapore though expectations for higher interest rates as the US Federal Reserve unwinds its massive stimulus programme have helped temper demand.
"Investors are generally skittish about investing in Reit IPOs on fears that interest rates are headed higher and growth opportunities in the market across most property segments are muted," said Pratik Ray, senior property analyst at HSBC in Singapore.
For the year to date, some 38 IPOs have been cancelled or withdrawn in the region while 138 deals have been completed, Thomson Reuters data showed. For the whole of 2013, 75 were cancelled or withdrawn while 407 were completed.Reuters
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Singapore investors are lucky, because Lotte Shopping has delayed the IPO? ;-)
Online shopping boom in Korea risks mall debt downgrades
SEOUL — South Koreans are spending record amounts shopping with their mobile devices, raising the risk of debt downgrades for retail giants still focused on mall traffic.
The odds that the nation’s No 1 department store operator, Lotte Shopping Co, will miss debt payments in the coming 12 months doubled to 0.64 per cent from 0.29 per cent a year earlier, according to Bloomberg’s default-risk model that takes into account a company’s finances and stock moves. That suggests it merits a non-investment debt rating. Default risk using the model also climbed for Shinsegae Co, the third-ranked department store operator.
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http://www.todayonline.com/tech/online-s...downgrades
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