by Ernie B. Calucag
Croesus Retail Trust is planning an initial public offering (IPO) in Singapore that could be about S$800 million in size, Reuters’ IFR said in a report Wednesday.
The business trust is backed by mainly Japanese assets. Croesus is reportedly looking to develop a pan-Asian portfolio, making Singapore a suitable listing jurisdiction.
IFR, however, reported that some question the listing jurisdiction.
“(Croesus) will start with purely Japanese assets, which caused bankers away from the deal to question why it would choose Singapore as a listing destination, given that J-REITs pay roughly similar yields and can tap a broader investor base,” the IFR report said.
“The only Japanese property trust listing in Singapore to-date has been Saizen REIT, which has been a legendary underperformer since listing,” it added.
IFR said Citigroup and DBS are managing the deal, which is likely to come to market this year.
This comes a day after Malaysia’s IHH Healthcare launched its US$2.2-billion IPO, potentially making it Asia’s second-largest IPO of the year.
The IPO has an indicative price range of RM2.67–2.85. The dual listing in Malaysia and Singapore is targeted for July 25.
The IPO, the first of its kind with a simultaneous launch in Malaysia and Singapore, comprises 2.2 billion shares with an overallotment option of up to 169 million shares.
A total of 22 cornerstone investors, including BlackRock, Kuwait Investment Authority and GIC, have committed to a total of 1.4 billion shares. There is a six-month lock-up period on holdings beyond 50 million shares for cornerstone investors.
IHH shares will be fungible between the Malaysia and Singapore exchanges, and will be denominated in each country’s home currency.
Retail investors in Malaysia have to buy the shares at the maximum price of RM2.85 and the ones in Singapore at S$1.18.
The institutional portion of the IPO closes for subscription on July 12 and the retail part on July 11.