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20-11-2014, 08:00 AM
http://www.todayonline.com/business/univ...-trust-ipo
Universal Terminal tests waters for trust IPO
PUBLISHED: 4:02 AM, NOVEMBER 20, 2014
SINGAPORE — Singapore-based petroleum storage company Universal Terminal has begun testing investor appetite for a business trust initial public offering (IPO) that may raise up to S$1 billion, in what may be Singapore’s largest IPO this year, media reports said yesterday.
Pre-marketing will continue for two weeks, with book-building expected to start on Dec 4 and listing targeted for Dec 18, said industry insiders.
Universal Terminal, which is co-owned by Chinese oil giant PetroChina and Singapore’s privately held Hin Leong Group, is based on Jurong Island and describes itself as one of the largest independent oil storage terminals in Asia. The trust will be backed by oil storage terminals.
State-owned PetroChina, which is China’s biggest listed oil firm by capacity, is looking to sell a portion of its 35 per cent stake in Universal Terminal’s IPO, the Wall Street Journal reported.
South-east Asia has seen growingdemand for oil storage capacity, thanks to the region’s status as a major oil trading centre and aspiring hub for the growing liquefied natural gas trade.
A source familiar with the matter said the deal could attract investors interested in oil assets as well as those seeking a yield play.
Universal Terminal is hoping to lure investors with yield at a time of low interest rates globally, as it seeks to pay up to 7.6 per cent yield to trust investors, the Wall Street Journal reported.
Companies have been taking advantage of Singapore’s lucrative business trust regime to list assets such as hotels, ports, ships, infrastructure and golf courses.
Business trusts and real estate investment trusts have become main attractions on the Singapore Exchange as investors seek steady returns in a low-interest-rate environment.
DBS, HSBC and Standard Chartered are joint global coordinators of the IPO. AGENCIES
Universal Terminal tests waters for trust IPO
PUBLISHED: 4:02 AM, NOVEMBER 20, 2014
SINGAPORE — Singapore-based petroleum storage company Universal Terminal has begun testing investor appetite for a business trust initial public offering (IPO) that may raise up to S$1 billion, in what may be Singapore’s largest IPO this year, media reports said yesterday.
Pre-marketing will continue for two weeks, with book-building expected to start on Dec 4 and listing targeted for Dec 18, said industry insiders.
Universal Terminal, which is co-owned by Chinese oil giant PetroChina and Singapore’s privately held Hin Leong Group, is based on Jurong Island and describes itself as one of the largest independent oil storage terminals in Asia. The trust will be backed by oil storage terminals.
State-owned PetroChina, which is China’s biggest listed oil firm by capacity, is looking to sell a portion of its 35 per cent stake in Universal Terminal’s IPO, the Wall Street Journal reported.
South-east Asia has seen growingdemand for oil storage capacity, thanks to the region’s status as a major oil trading centre and aspiring hub for the growing liquefied natural gas trade.
A source familiar with the matter said the deal could attract investors interested in oil assets as well as those seeking a yield play.
Universal Terminal is hoping to lure investors with yield at a time of low interest rates globally, as it seeks to pay up to 7.6 per cent yield to trust investors, the Wall Street Journal reported.
Companies have been taking advantage of Singapore’s lucrative business trust regime to list assets such as hotels, ports, ships, infrastructure and golf courses.
Business trusts and real estate investment trusts have become main attractions on the Singapore Exchange as investors seek steady returns in a low-interest-rate environment.
DBS, HSBC and Standard Chartered are joint global coordinators of the IPO. AGENCIES
