CapitaLand said to raise $2.47b in unit IPO

CapitaLand raised $2.47 billion selling shares in its CapitaMalls Asia unit in Singapore’s biggest initial public offering in at least a decade, said a person familiar with the matter.

Southeast Asia’s largest real estate developer sold 1.165 billion shares in CapitaMalls at $2.12 each, the person said, asking not to be identified before a company announcement. The shares were previously offered at $1.98 to $2.39 apiece.

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 $5.3 billion as of Sept. 30, according to a prospectus filed with Singapore’s central bank Nov 2.

The share sale is the largest IPO in the city-state since Singapore Telecommunications’s initial offering in 1993, which raised more than $4 billion, a record for the island.

CapitaMalls Asia’s portfolio includes the Ion Orchard shopping mall in Singapore, a project jointly developed with Hong Kong’s Sun Hung Kai Properties. The shopping centre, which opened in July, counts LVMH Moet Hennessy Louis Vuitton SA’s Louis Vuitton, and Fast Retailing Co.’s Uniqlo chain among its tenants.

CapitaLand said on Oct 5 it will retain majority control of the unit following the share sale and for the “foreseeable future”.

Source : The Edge – 17 Nov 2009

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