Singapore to see $1.2b trust IPOs in Dec

After the disappointment with Trans-cab listing, that was aborted days before its listing, the city-state’s stock market, will test investors’ confidence with two trust IPOs.  The trusts seek to raise about $1.2 billion in December, in Singapore stock exchange, which has been facing a slump this year

The first listing is of Universal Terminal, partly owned by Chiana’s oil giant PetroChina, which has begun premarketing its $800 million IPO for its storage terminals. The company is scheduled to begin its book building on December 4 and is targeting a December 18 listing; as it plans to ride on the wave of trusts seeking to list their assets here.

Till last year, Singapore benefited significantly from companies using its trust regime to list their assets in the city state. Situation has been different this year, as funds sought destinations with better returns, appetite for business trusts and REITs fell significantly.

The benchmark this year has been Accordia Golf Trust, which raised S$760 million; but a majority of investors for this IPO were from Japan.

Last year, Singapore saw companies raise more than $5 billion through IPOs.  Over 90% of these were business trusts or REITS. Till now, the figure is less than a third of this for the current fiscal.

A total of 58 trusts have gone for IPOs in Singapore.

If successful, the petroleum storage company Universal Terminal could emerge as Singapore’s largest IPO this year. Executives in the finance space, tracking Universal IPO, said the company had not decided on its indicative yield yet.

PetroChina is estimated to have a 35% stake in Universal Terminal, while the rest is owned by Singapore billionaire Lim Oon Kuin’s Hin Leong Group. The company plans to use the proceeds from the IPO to expand operations in Asia.

The second listing will be that of Keppel Telecommunications and Transportation Ltd (Keppel T&T) which is also targeting a mid-December listing for its data centres, and plans to raise about S$540 million ($432 million).

DEALSTREETASIA has learnt that Keppel DC REIT, which plans to offer 7% yield, has attracted about 10 cornerstone investors, who have agreed to buy more than 50% of the units on offer.

Keppel DC Reit will sell about 70% of its enlarged share capital with parent firm, and plans to use about half the proceeds to subscribe to units of this real estate investment trust (REIT). Keppel T&T will own the remaining 30%.

Keppel T&T is a unit of Singapore conglomerate Keppel Corp and the REIT will allow the company to finance its own expansion plans without having to depend on its parent company. This will be the second REIT, to be listed by Keppel Corporation. About a decade ago, it had floated Keppel REIT on the Singapore exchange.

This also marks the first IPO of a data center trust in Asia. The REIT will launch with eight properties in Asia-Pacific and Europe: Keppel Digihub and Keppel Datahub 1 in Singapore; Gore Hill Data Centre in Sydney and iseek Data Centre in Brisbane; Basis Bay Data Centre in Selangor; GV7 Data Centre in London; Almere Data Centre in Amsterdam and Citadel 100 Data Centre in Dublin.

 Image:Freedigitalpicures.net

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.