GIC’s logistics unit to raise up to US$3b in IPO

Sovereign wealth fund Government of Singapore Investment Corp (GIC) is expected to list its logistics unit on the Singapore Exchange on October 15.

The initial public offering (IPO) of Global Logistic Properties (GLP) aims to raise up to US$3 billion in what could be Singapore’s biggest IPO.

If successful, the IPO would be bigger than SingTel’s S$4 billion (US$2.9 billion) listing in 1993, and dwarf CapitaMalls Asia’s US$2.02 billion IPO launched last year.

GLP owns industrial and logistic properties in China and Japan. It is one of Asia’s biggest operator of logistics parks, managing 53 logistics parks in 18 major cities.

Investor roadshows for the IPO will begin on September 23, and pricing is expected on October 8.

The IPO is expected to be split between a 95 per cent global tranche and a 5 per cent Singapore tranche.

Sources said the proceeds of the IPO will be used to support growth plans in China and Japan, as well as to pay down existing loans and for general working capital.

Citigroup and JPMorgan are global coordinators and book runners for the IPO, while DBS, UBS and China International Capital Corp are book runners.

GLP’s IPO will be among a number of other large Singapore IPOs that are expected to hit the market in coming months, including a S$1 billion IPO planned by Mapletree Industrial Real Estate Investment Trust and a possible S$700 million IPO by China-based New Century Shipbuilding.

Source : Channel NewsAsia – 9 Sep 2010

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