New initial public offerings are beginning to move quickly in Singapore. The first this year will be the largest to date. It is being launched by Singapore's first real estate investment trust. M&L Hospitality Trusts hopes to raise $407 million U.S. ($509 million Singapore).
M&L expects to make its debut on the Singapore Stock Exchange May 7. ($1 U.S. equals 1.2530 Singapore dollars)
Others are expected to follow shortly.
When it debuts, Reliance Communication's undersea cable unit will easily overtake M&L's IPO in expected dollars raised. Reliance plans to raise $1.4 billion by floating its undersea cable networks via a business trust.
Other large Singapore IPOs in the pipeline include the Formula One franchise, English football club Manchester United and the aircraft leasing business of asset management firm Investec.
M&L Hospitality Trusts owns hotels in Singapore, Australia and Japan. The Trust is made up of a real estate investment trust, M&L Hospitality Real Estate Investment Trust (M&L REIT), and a business trust, M&L Hospitality Business Trust (M&L BT).
Investors in M&L Hospitality Trusts will hold stapled securities each consisting of one unit in M&L REIT and a unit in M&L BT.
According to its preliminary prospectus, published on the Monetary Authority of Singapore (MAS) Opera website, M&L plans to sell up to 585.4 million units at an indicative price of S$0.80 to S$0.87 a unit.
M&L REIT will distribute 100 per cent of its taxable income from listing date to the end of 2013. At least 90 per cent of its taxable income will be distributed in years after 2013,
Analysts forecast M&L REIT may yield up to 8.05 per cent this year and 7.7 per cent to 8.3 per cent in 2013.
DBS Group, JPMorgan and UBS are the joint global coordinators, book-runners, issue managers and underwriters.
According to its press release, M&L owns the Ibis on Bencoolen and Ibis Novena hotels in Singapore, Four Points by Sheraton and Swissotel in Sydney, Travelodge Docklands in Melbourne and the Hilton Nagoya in Japan. The six hotels have a total 2,509 rooms.
M&L Hospitality Trusts is sponsored by Grandline International which is owned by the Kum family, a leading Singapore's shipping industry group.
M&L REIT is managed by M&L Manager Pte Ltd and M&L BT is managed by M&L Trustee-Manager Pte Ltd.
No comments:
Post a Comment