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Headliners (Mapletree Commercial Trust, SGX, Think Environmental, SIAS)
Headliners | 21 April 2011
Related stocks:
S68
A78
By: Daxx Chong
Articles (58) Profile

Mapletree Commercial Trust Launches Second Largest IPO This Year
The Mapletree Investments, a property arm of the state-owned Temasek Holdings, is launching what is set to become Singapore’s second largest initial public offering (IPO) this year. Mapletree Commercial Trust (MCT) aims to raise up to $983m from the offering, after pricing the shares at $0.88 each – slightly above the mid-point of its marketed range of $0.84 to $0.91 per unit. At the offer price, the projected yield for the year ending 31 Mar-12 and the year after is 5.7% and 6.2% respectively. MCT will sell up to 1.1b units (including the over-allotment option), of which 548.1m have been set aside for placement to institutional investors and another 302.2m to be taken up by cornerstone investors including NTUC FairPrice Co-op, AIA group, Hillsboro Capital and Itochu Corp. The trust will initially hold three assets worth $2.8b in total, with crown jewel being Singapore’s largest mall VivoCity and the others being Bank of America Merrill Lynch HarbourFront and PSA Building office buildings. MCT is expected to start trading on the mainboard on 27 Apr.

SGX Dishes Out Lowest Quarterly Profit In 2 Years
Singapore Exchange (SGX), Asia’s second-largest listed bourse by market value, recorded its lowest quarterly profit in two years. For the January-March period, SGX posted a net profit of $67m as compared to $74.6m a year ago. The figure was well below the average forecast of $85m by four analysts polled by Reuters, evidently hurt by costs related to its failed bid for Australian bourse ASX and higher technology spending. Cost incurred for the ASX merger chalked up $12m, while operating expenses rose 18% attributed to a 40% spike in technology spending. Unmistakably, the failed US$8b bid for ASX has put a dent on the bourse’s growth strategy and some analysts say it could become a takeover target for global exchanges trying to capture Asia’s growth.

Think Environmental Unveils Gold Mining Strategy, First Production Due In 5 Months
The Think Environmental (ThinkEnv), the only mainboard-listed company in Singapore with gold-mining assets, has unearthed greater details on its venture at a media and analyst briefing. ThinkEnv will be investing between US$30-45m over the next 12 months in its new gold mining business, and targets for a production level of 3,000 oz of gold per month by March next year. Its first round of production is due in five months, stemming from artisanal mines that it acquired in the Republic of Mali in West Africa. Currently, it has three producing artisanal mines in South Mali and plans are afoot to further increase its ownership of such small-scale mines to 12-20 by Mar-13. The gold-mining venture marks the company’s second attempt to diversify its business in recent years. When quizzed if the company would dispose its green energy business to focus on gold, director of corporate communications Roger Poh was non-committal and reasoned, ‘The environmental business has matured, it has taken a life of its own, it can sustain its own’. As such, the company can now look to move into other businesses.

SIAS Withdraws Earlier Comment On Shanghai Asia Holdings
The head of the Securities Investors Association of Singapore (SIAS), David Gerald, has retracted his comments on Shanghai Asia Holdings’ (SAH) proposal to sell all of its businesses, which he earlier said was conducted in a manner that was unfair to minority shareholders. In a statement issued on 12 Apr, Gerald said that his comments were made without knowledge of the SAH’s announcement on 25 Oct last year, in which the company stated that an extraordinary general meeting would be held for shareholders to raise questions, and vote on the deal. Since SAH announced that it is looking to sell its aluminium foil and cigarette carton printing businesses for Rmb1b last year, numerous minority shareholders have condemned the deal.

With a long-standing interest in economics and finance, Daxx is the Senior Research Editor of Shares Investment.

Please click here for more information about this author.

Singapore Exchange  8.220 -0.04 -0.48%   
Business: [FY18 Turnover] Equities & fixed income (48.2%), derivatives (40.2%), mkt data & connectivity (11.6%).

Insight: Jan-19, 1H19 operating revenue increased 5.7% to $... Read More
LionGold Corp  -- -- --   
Business: Co has interests in gold mining and exploration companies in Australia and Ghana.

Insight: May-19, FY19 revenue rose 18.6% due to increased t... Read More


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