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Headliners (CourtsAsia, SembMar, UOB, MetroHldg)
Headliners | 12 October 2012
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By: Jade Lee
Articles (97) Profile

Courts’ IPO To Raise $137m For Indo Expansion 
Courts Asia has launched its initial public offering (IPO) for a mainboard listing, with 178m shares priced at $0.77 each. This is the group’s second attempt at a listing after an earlier effort in 2010, which was later withdrawn. Courts Singapore was also previously listed on the Singapore Exchange, before taken private by Singapore Retail Group (SRG) in 2008. SRG is owned by Asia Retail Group, which is backed by Barings Private Equity. For the $137m IPO, Courts Asia is offering 60m new shares while SRG is offering 118m existing shares. About 77.9m of the shares on offer are going to 4 cornerstone investors collectively investing $60m and taking up 44% of the offering. Some 76.9m shares have been set aside for institutional investors, while 8.9m shares are being offered to the public. According to bookrunner HSBC, the institutional placement tranche was more than 3 times oversubscribed. Courts Asia plans to use about 91% of the net proceeds ($43.8m, excluding the $86.2m from the sale of SRG’s shares) from the IPO to invest in Indonesia and capitalise on its economic growth rate. Its first store in Indonesia is expected to come up in Jakarta by early 2014.

Sembcorp Marine Secures A Repeat Order
Sembcorp Marine’s subsidiary, Jurong Shipyard has signed a letter of intent to build a semi-submersible accommodation rig for repeat customer Prosafe AS. The contract is 1 of 2 options granted by Sembcorp Marine to Prosafe last December when it ordered a US$291.6m accommodation rig, the Safe Boreas. Prosafe’s new rig with Jurong Shipyard will be ready for operation in the North Sea in 2015. Analysts estimate the latest contract value to be about US$295m, slightly higher than Safe Boreas’ contract. With that, Sembcorp Marine’s order haul for 2012 could be lifted to about $9.5b as its order book for 2012 swells to a record level. As part of the contract, Jurong Shipyard was awarded two additional options for newbuild rigs, so Prosafe has altogether 3 option units with Sembcorp Marine.

UOB Targets Regional Small Business Banking Expansion
United Overseas Bank (UOB) aims to double loans to South-east Asian small businesses by 2015 and expects strong loan growth to come from Thailand and Indonesia. To tap on an expected rise in demand for funding from small businesses, UOB intends to invest in new technology and hire at least 100 relationship managers in the next year, growing its team of regional business bankers by at least 10%. In Singapore, UOB has grown its sales force by 50% over the last 2 years to station business banking managers in all 67 branches. Victor Lee, UOB group head of business banking said: “It now serves one in every 2 small businesses in Singapore, which now accounts for half of UOB’s business banking revenue.” He thus expects the next phase of growth to come from Malaysia, Thailand and Indonesia.

Metro Acquired CBD Area Site In Jiangxi For $373m
Metro Holdings has acquired a mixed development site in the new central business district (CBD) area of Nanchang, Jiangxi province, China for Rmb1.9b (approximately $373m), together with Hong Kong-listed Chinese property developer Top Spring International. The 269,454 square metre leasehold land parcel in Honggutan New District has a plot ratio gross floor area of 795,000 square metre. Metro and Top Spring plan to develop a large, upscale urban mixed development – including commercial office, residential and entertainment components – on the plot. The land use rights for the plot will grant 70 years for residential use and 40 years for commercial, office and entertainment uses. In addition, this latest project comes on the back of another successfully property investment at Prince Charles Crescent that it won jointly with partners Wing Tai and United Engineers, further testifying Metro’s ability to utilise recycled capital and generate net asset value growth.

Jade manages and oversees a portfolio of stocks which are mainly focused on the mining and property sectors at Shares Investment.

Please click here for more information about this author.

Sembcorp Marine  1.220 +0.030 +2.52%   
Business: Co is a leading global marine & offshore engineering group. [FY18 Turnover] rigs & floaters, repairs & upgrades, offshore platforms (98.8%), ship chartering (1%), others activities (0.2%).

Insight: May-19, 1Q19 revenue fell 31.3% to $810.6m due to ... Read More
United Overseas Bank  26.000 +0.05 +0.19%   
Business: [FY18 Turnover] Group retail (43.3%), group wholesale (43.2%), global markets & investment management (5.1%), others (8.4%).

Insight: May-19, 1Q19 total income rose 7.8% to $2.4b due t... Read More
Metro Hldgs  0.920 -- --   
Business: Invests in property & manages retail businesses. [FY19 Turnover] Retail (80.3%), property (19.7%).

Insight: May-19, FY19 revenue rose 26.1% as the property di... Read More

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