The Government of Singapore Investment Corporation (GIC) may sell just a minority stake in the listing of Global Logistic Properties (GLP) that is expected to raise a record US$3 billion ($4.01 billion).
According to a Reuters report yesterday that cited unnamed sources, GIC may offer shares of its logistics unit at 1.3 to 1.4 times book value in its initial public offering.
GLP develops and manages properties valued at more than US$8 billion.
The report also quoted the sources – who attended a confidential meeting for fund managers arranged by a bookrunner – as saying that at the proposed valuations, the share offering would be a “tough sell” as the bulk of the assets are in Japan.
According to the sources, GLP is forecast to post net earnings of US$231 million next year and US$277 million in 2012.
The IPO’s bookbuilding is expected to start next Thursday and pricing is expected on Oct 8, the Reuters report said.
If successful, it would also be the largest IPO in Singapore, slightly above SingTel’s $4-billion IPO in 1993.
Source : Today – 15 Sep 2010