CapitaMalls Asia IPO seeks as much as S$2.78 billion

SINGAPORE: CapitaLand Ltd, Southeast Asia’s largest developer, is seeking S$2.8 billion (RM6.8 billion) from the listing of its CapitaMalls Asia Ltd unit as it seeks to grow its retail mall business across the region.

Some 1.2 billion shares were being offered at S$1.98 to S$2.39 apiece, according to emails sent to investors by sale arrangers Credit Suisse Group AG and Deutsche Bank AG. The share sale will be the biggest in Singapore this year, according to data tracked by Bloomberg.

The listing of CapitaMalls Asia will give investors access to a company that manages 86 retail Properties across Asia, including China. The company’s net asset value is estimated at about S$5.3 billion as of Sept 30, according to a prospectus filed with Singapore’s central bank today.

“The market is expected to be quiet, so this IPO will provide a boost,” says Najeeb Jarhom, an analyst at AmFraser Securities Pte. “Investors have seen CapitaLand’s success in spinning off its property trusts, and fund managers wanting exposure to the China consumption story will be interested.”

CapitaLand has gained 13% since it announced plans to list the unit on Oct 5. The Singapore benchmark Straits Times Index has added 1.5% in the period.

By Bloomberg (by Philip Lagerkranser & Shiyin Chen)