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24-05-2014, 09:15 AM
COMPANIES
First Sponsor plans $99m IPO
54m shares likely to be offered at $1.50-$1.60 each
Published on May 24, 2014 1:28 AM
By Tee Zhuo
REAL estate company First Sponsor Group plans to list on the Singapore Exchange (SGX) in an initial public offering (IPO) that could value the firm at more than $900 million.
It intends to launch 54.05 million shares at between $1.50 and $1.60 apiece, according to the preliminary prospectus lodged with the Monetary Authority of Singapore yesterday.
The firm has not confirmed the IPO date but an SGX statement by a subsidiary of Hong Leong Group Singapore said it is "likely in the third quarter of this year".
Hong Leong holds 46.3 per cent of the firm through its Millennium & Copthorne Hotels unit while the Tai Tuck Group has 47.7 per cent. The rest is held by directors and management of First Sponsor Group.
The $98.9 million expected to be raised in the IPO will be used to drive First Sponsor Group's developments in China, particularly Chengdu and Dongguan.
The Cayman Island-incorporated company develops residential and commercial properties in tier-two Chinese cities, such as Chengdu and Dongguan, and also provides financing services focusing on firms in Shanghai.
It has hotel investments and its projects include the completed 196-room M Hotel Chengdu and upcoming Millennium Waterfront Chengdu Hotel.
In March it entered an agreement with the Chengdu Wenjiang government for a proposed residential project.
First Sponsor's expected market capitalisation is estimated to be $945.2 million if the shares in the IPO are sold at $1.55 each.
About 8.9 per cent of the share capital will be sold to the public, with cornerstone investors holding 1.6 per cent.
After the IPO, Hong Leong's stake is expected to drop to 34.4 per cent, mainly due to the redistribution of shares to entitled shareholders by subsidiary Millennium & Copthorne Hotels New Zealand.
Tai Tuck's stake may drop to 42.7 per cent due to the dilution of shares after the IPO.
Net profit for the group was $47.99 million last year, up from $33.7 million in 2012, while revenue rose from $148 million to $157.5 million.
Net asset value per share as at Dec 31 last year was $1.57, up from $1.29 a year earlier.
teezhuo@sph.com.sg
First Sponsor plans $99m IPO
54m shares likely to be offered at $1.50-$1.60 each
Published on May 24, 2014 1:28 AM
By Tee Zhuo
REAL estate company First Sponsor Group plans to list on the Singapore Exchange (SGX) in an initial public offering (IPO) that could value the firm at more than $900 million.
It intends to launch 54.05 million shares at between $1.50 and $1.60 apiece, according to the preliminary prospectus lodged with the Monetary Authority of Singapore yesterday.
The firm has not confirmed the IPO date but an SGX statement by a subsidiary of Hong Leong Group Singapore said it is "likely in the third quarter of this year".
Hong Leong holds 46.3 per cent of the firm through its Millennium & Copthorne Hotels unit while the Tai Tuck Group has 47.7 per cent. The rest is held by directors and management of First Sponsor Group.
The $98.9 million expected to be raised in the IPO will be used to drive First Sponsor Group's developments in China, particularly Chengdu and Dongguan.
The Cayman Island-incorporated company develops residential and commercial properties in tier-two Chinese cities, such as Chengdu and Dongguan, and also provides financing services focusing on firms in Shanghai.
It has hotel investments and its projects include the completed 196-room M Hotel Chengdu and upcoming Millennium Waterfront Chengdu Hotel.
In March it entered an agreement with the Chengdu Wenjiang government for a proposed residential project.
First Sponsor's expected market capitalisation is estimated to be $945.2 million if the shares in the IPO are sold at $1.55 each.
About 8.9 per cent of the share capital will be sold to the public, with cornerstone investors holding 1.6 per cent.
After the IPO, Hong Leong's stake is expected to drop to 34.4 per cent, mainly due to the redistribution of shares to entitled shareholders by subsidiary Millennium & Copthorne Hotels New Zealand.
Tai Tuck's stake may drop to 42.7 per cent due to the dilution of shares after the IPO.
Net profit for the group was $47.99 million last year, up from $33.7 million in 2012, while revenue rose from $148 million to $157.5 million.
Net asset value per share as at Dec 31 last year was $1.57, up from $1.29 a year earlier.
teezhuo@sph.com.sg
