Singapore’s Global Logistic Properties to raise $3 bn in IPO

Global Logistic Properties (GLP), the overseas warehousing unit of Singapore's sovereign wealth fund GIC, launched Monday an initial public offering (IPO) to raise as much as S$3.9 billion (approximately $3 billion), in the nation's biggest ever offering since SingTel's S$4 billion IPO in 1993.

The IPO is expected to garner S$3.4 billion at S$1.96 a share, which could reach up to S$3.9 billion on fully exercising the over-allotment option. The share price has been fixed at the top end of the indicated price band of $1.78-$1.96 a share, following a successful book building process.

Out of the total offering of 1.76 billion shares, about 33 per cent is earmarked for cornerstone investors who have committed S$1.2 billion. These investors include the Alibaba Group, CB Richard Ellis Global Real Estate Securities, ING Clarion Real Estate Securities, Lion Global Investors and others.

The new GLP shares will be listed on the Singapore Stock Exchange with effect from 18 October.

After the proposed listing of GLP, GIC will be the single largest shareholder of the company with 51-per cent stake, if the over-allotment option is exercised.
 
Seek Ngee Huat, president of GIC Real Estate, said: ''The capital raised from the IPO by GLP will facilitate GLP's access to capital and allow the company to maximize its growth potential.

GLP is looking to position itself for long-term growth through this proposed listing,'' he further said.