Talking about tech IPOs
when the time comes to go public, London usually loses out to New York and Hong Kong — places where locally tethered funds are fatter, exogenous effects are less esoteric and armies of private punters can be relied on to buy on hype.
FT
S’pore has the same problems as London. Most of the institutional money here is from overseas groups, while our retail investors only want safe securities like Hyflux perps and preference shares.
In 1997, Amazon did its IPO. “Peanuts”. Next big one was Google in 2004.
The spate of M’sian IPOs rubbishewd by S’porea-based analysts.
http://www.cnbc.com/id/48797994?__source=ft&par=ft
Shumeone doing covert black ops. I mean SGX’s FTs have failed: No MU, no F1. IHH Medical was courtesy of Temasek being foundation investor and of presence of Parkway’s S’pore hospitals inside IHH.
But FTs hold top two posts in SGX.
https://atans1.wordpress.com/2012/08/26/double-confirm-f1-not-listing-here/
A few months ago, MediaCorp reported that it heard that F1 was not listing here, not juz postponing its IPO.
On Friday MediaCorp reported, Singapore Exchange CEO Magnus Bocker said he expects a few big ticket initial public offerings (IPOs) to come into Singapore for the rest of 2012.
These listings are expected to come from local and regional companies. http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1221696/1/.html
F1 is not a regional or local company.
And “big ticket”? Not USA$1bn and bigger IPOs aka M’sia. We had two sub billion USD IPOs of Reits and another hospital Reit of similar size is coming. Reuters reports: “Religare Health Trust is set to launch an up to $400 million initial public offering in Singapore, a source said, in a move that will allow the backer of the trust, Indian hospitals group Fortis Healthcare, to cut its substantial debt level.”
When is the ang moh FT CEO and his Indian FT president (“Tonto” is his name?) going to deliver on a US$1bn IPO. S’pore has never played second fiddle to M’sia in capital markets, except in Islamic finance. Now in IPOs, the FTs have S’pore down.
Related rant: https://atans1.wordpress.com/2012/08/22/while-sgxs-ft-ceo-wanks-kl-bags-yet-another-mega-ipo/
1Malaysia Development Bhd., the state investment company known as 1MDB, plans to raise as much as $2 billion in an initial public offering of its power assets, Reuters reports. The IPO may take place in the first quarter of next year.
M’sia Boleh, what with Felda Global Ventures Holdings and IHH Healthcare completing two of the world’s three biggest IPOs this year. Companies have raised a combined US$5.1 billion in Kuala Lumpur this year, compared with US$2.9 billion in Hong Kong and US$2 billion in Singapore, according to data compiled by Bloomberg.
SGX’s ang moh FT has yet to get on his own bat a mega IPO. Can only talk.
Related rant on ang moh tua kee: https://atans1.wordpress.com/2012/08/15/another-msian-mega-ipo-2/
MMC Corp has hired CIMB, Credit Suisse, JP Morgan and Maybank as the joint global coordinators of a US$ 1 bn IPO of its 51% of power unit, Malakoff Corp, Reuters reports.
Meanwhile SGX’s FT ang moh CEO has failed to attract mega IPOs here. M’sian stock exchange, no FTs there, has had a string of mega IPOs: Felda, IHH (also listed here but no thanks to FT ang moh), Astro (coming) and now this. One of leading bourses for IPOs this yr.
M’sia Boleh! And no FTs to teach locals how to do things.
Here I prophesised that Far East Reit would be forced to increase the expected yield on its trust from a niggardly 6-6.5%.
Well Morocco Mole (sidekick to Secret Squirrel) tells me that the Reit, which owns hotels and serviced residences in Singapore has not changed its pricing, despite CDL’s yield of 6ish% and Ascendas Hos of almost 8%.
So don’t subscribe if you are hoping for a pop in the price on listing day. CDL looks a better yield play. Got public track record.
Related post: https://atans1.wordpress.com/2012/07/30/ascendas-hospitality-trust-surprises/
(Or “No FTs, but still the mega IPOs come)
Astro All Asia Networks has applied for approval to go public. The IPO will be worth M$4.7bn (US$1.5bn or S$1.9bn) a deal that would add to Malaysia’s dominant position in IPOs this year globally. Part of Ananda Krishnan’s empire, it was once a listco before he took it private a few yrs ago,
And its bourse’s CEO is local, not an FT nor is his number 2, unlike on SGX.
Related rant
https://atans1.wordpress.com/2012/07/23/another-co-decides-not-to-list-on-sgx/
Ascendas Hospitality Trust (A-HTrust) closed at its issue price last Friday. Considering that the public offer was about 6.9 times subscribed and yields projected at 7.9% (FY13) and 8.0% (FY14), while CDL’s is 6% (admittedly that is trailing) and strong demand for the placement, I expected the securities to close higher.
Maybe it’s the structure? The A-HTrust is a ‘stapled security’ comprising the Ascendas Hospitality Business Trust (80%) and the Ascendas Hospitality Real Estate Investment Trust (20%).
Mr Tan Juay Hiang, chief executive, Ascendas Hospitality Trust, said earlier last week: “The REIT structure does allow unit holders and investors to enjoy a more tax efficient structure. And the business trust will allow the platform to look at the potential development projects, unlike the REIT there is a limitation. So on a staple securities basis, it does provide quite a fair bit of benefits for unit holders and investors.”
Maybe it’s because the trust said it’s looking at acquisitions to grow the value of its assets going forward. Rights issueS, more debt?
Maybe because as analysts said there are downside risks to hospitality trusts as the tourism market is highly sensitive to global downturns. Projections could go wrong.
Maybe it shouldn’t have allotted an additional 73.4 million securities to the placement tranche of its initial public offering in Singapore as part of its overallotment process?
Update on 31 July: Another reason could be that the assets are outside S’pore and investors place a premium on S’pore based assets. The reverse of the govt’s “FTs are betterest” policy.
Anyway, means the coming Far East Reit got to redo its sums again about being cheapskate https://atans1.wordpress.com/2012/07/24/far-east-reit-cheapskate/
Keep an eye on A-HTrust. Could be worth adding to portfolio for yield and capital appreciation. I like the combi of biz trust and Reit, though not sure if it will work in practice. Got to research the issue.
Far East Reit which owns hotels and serviced residences in Singapore, is being marketed at a yield of 6-6.5% Compares unfavourably about 7.9% offered for Ascendas Hospitality Trust (at issue price: expect it to fall to 6ish level when trading starts i.e. price moves up) and 6% for CDL Hospitality Trust
http://www.reuters.com/article/2012/07/20/us-fareast-reit-ipo-idUSBRE86J04L20120720
Bet you the yield will have to be improved (giving room for some capital gains) for the institutions.
The 180 Chinese companies that went public around the world since the beginning of 2010 are trading at an average of 21% below their IPO prices, Bloomberg News reports.
In Singapore, the third-biggest market for such listings after Hong Kong and New York, eight Chinese companies that went public in 2010 have declined an average of 47 percent from their offer prices, the data show. That compares with a drop of 15 percent for the 23 non-Chinese firms that had IPOs in 2010.
And trading volumes are shrinking. In the last 12 months, trading volumes in S-Chips have halved. [Update on 24 April 2012 at 7.20pm]
But HK and the US are doing something. Regulators in Hong Kong are set to propose rules that would make banks liable for faulty IPO documents, Reuters reports. And earlier today, Hong Kong’s securities regulator fined a brokerage firm and revoked its corporate finance licence. Mega Capital (Asia) has been fined HK$42m (US$5.4mfor “inadequate and sub-standard” diligence work and “failure to act independently”. The firm was the sole adviser to Hontex International, which had raised HK$1bn via a share sale in 2009. BBC Online
In the US, the SEC and FBI have been investigating people allegedly involved in fraud in China-based companies listed on US exchanges. Latest [25 April 2012] SEC investigations and analysis of the complicated structure that overseas listed Chinese cos (including S-Chips) have to adopt to list overseas which makes malpractice easier..
Err waz happening here? We are told by an SGX non-executive director that SGX is “a private club” despite it regulatory role. He said this recently when representing SGX in court as SGX’s lawyer in a case involving a S–Chip. Article 14 analyses the case.
Thoughts of a Cynical Investor 