Singapore-based companies seem to be considering initial public offer (IPO) related decisions of their subsidiaries and firms held in their investment portfolio. While Erza Holdings has postpone US listing of its sub-sea unit, the GIC is planning IPO for Australia-based car leasing firm, held by it.
Ezra puts US sub-sea unit IPO plan on hold
Ezra Holdings, a Singapore-listed oilfield service company, has put on hold a plan to list its sub-sea services unit in the United States, prompted by unfavourable market conditions, a report said.
International wire agency Reuters, has quoted Ezra’s chief financial officer Eugene Cheng, stating that the company had put the IPO on hold, “given where the markets are”.
Read the Reuters report [here]
Last year, the company had appointed JP Morgan Chase & Co to help it list strategic options for its sub-sea services division, including an initial public offering (IPO) in the US. The report also further quoted Cheng as stating that comparable companies were now trading at a ratio of three to four times EBITDA, as against seven to eight times when it had first considered the option of a listing.
Ezra’s share, which has slid 60 per cent last year, fell 0.9 per cent to S$0.525 ($0.393) on Wednesday versus a 0.4 per cent decline in the benchmark index .
GIC, Ironbridge mull IPO of FleetPartners
Singapore sovereign wealth fund GIC and Australian private equity firm Ironbridge Capital are planning an initial public offering (IPO) of FleetPartners Ltd, in a deal that would value the car leasing company at about $615 million, news agency Reuters reported, quoting a source familiar with the developments.
The report said the listing of FleetPartners was expected in April this year and added that the GIC and Ironbridge were looking to sell between 50-80 per cent in the company.
The Reuters story said that Credit Suisse was handling the share sale of FleetPartners, which manages over 50,000 vehicles across Australia and New Zealand.
Read the Reuters report [here]
Mcmillan Shakespeare Ltd that offers similar facilities in Australia and competes with FleetPartners, is listed and trades at 10.4 times earnings and has a return on equity of over 26 per cent, according to Thomson Reuters data, the report further said, while adding that analysts expected consolidation in this sector.
The Singapore sovereign fund and Ironbridge Capital had led a consortium which, bought FleetPartners in September 2008, and the company was formerly the fleet leasing division of ANZ Banking Group Ltd.
