First Sponsor

[greengiraffe]

COMPANIES
First Sponsor plans $99m IPO

54m shares likely to be offered at $1.50-$1.60 each
Published on May 24, 2014 1:28 AM



By Tee Zhuo

REAL estate company First Sponsor Group plans to list on the Singapore Exchange (SGX) in an initial public offering (IPO) that could value the firm at more than $900 million.

It intends to launch 54.05 million shares at between $1.50 and $1.60 apiece, according to the preliminary prospectus lodged with the Monetary Authority of Singapore yesterday.

The firm has not confirmed the IPO date but an SGX statement by a subsidiary of Hong Leong Group Singapore said it is "likely in the third quarter of this year".

Hong Leong holds 46.3 per cent of the firm through its Millennium & Copthorne Hotels unit while the Tai Tuck Group has 47.7 per cent. The rest is held by directors and management of First Sponsor Group.

The $98.9 million expected to be raised in the IPO will be used to drive First Sponsor Group's developments in China, particularly Chengdu and Dongguan.

The Cayman Island-incorporated company develops residential and commercial properties in tier-two Chinese cities, such as Chengdu and Dongguan, and also provides financing services focusing on firms in Shanghai.

It has hotel investments and its projects include the completed 196-room M Hotel Chengdu and upcoming Millennium Waterfront Chengdu Hotel.

In March it entered an agreement with the Chengdu Wenjiang government for a proposed residential project.

First Sponsor's expected market capitalisation is estimated to be $945.2 million if the shares in the IPO are sold at $1.55 each.

About 8.9 per cent of the share capital will be sold to the public, with cornerstone investors holding 1.6 per cent.

After the IPO, Hong Leong's stake is expected to drop to 34.4 per cent, mainly due to the redistribution of shares to entitled shareholders by subsidiary Millennium & Copthorne Hotels New Zealand.

Tai Tuck's stake may drop to 42.7 per cent due to the dilution of shares after the IPO.

Net profit for the group was $47.99 million last year, up from $33.7 million in 2012, while revenue rose from $148 million to $157.5 million.

Net asset value per share as at Dec 31 last year was $1.57, up from $1.29 a year earlier.

teezhuo@sph.com.sg

[greengiraffe]

http://www.businesstimes.com.sg/breaking...r-20140710

PUBLISHED JULY 10, 2014
Kwek Leng Beng optimistic about China's property sector
BYANGELA TAN
angelat@sph.com.sg

KWEK Leng Beng, executive chairman of Hong Leong Group Singapore and chairman of Millennium & Copthorne Hotels plc (M&C UK) said the investment in IPO- aspirant, First Sponsor Group (FSGL), is one of its growth engines in China - ST PHOTO: MARK CHEONG
KWEK Leng Beng, executive chairman of Hong Leong Group Singapore and chairman of Millennium & Copthorne Hotels plc (M&C UK) said the investment in IPO- aspirant, First Sponsor Group (FSGL), is one of its growth engines in China.
"Besides building M&C UK's brand proposition in this key market, it enables us to own and manage hotels developed by this platform through mixed development,'' Mr Kwek said.
Hong Leong Group is one of FSGL's key controlling shareholders via M&C UK.
Established in late 2007, FSGL has three key operating segments in the PRC, namely, property development, property holding and property financing.

http://www.businesstimes.com.sg/breaking...o-20140710

PUBLISHED JULY 10, 2014
First Sponsor Group offers 34.05m shares at S$1.50 each in Singapore IPO
BYKELLY TAY
kellytay@sph.com.sg @KellyTayBT


FIRST Sponsor Group Ltd (FSGL) - a developer of residential and commercial properties in China - on Thursday offered 34.05 million shares at S$1.50 each for mainboard listing in its initial public offering (IPO) in Singapore.
The invitation represents about 5.8 per cent of the group's enlarged share capital.
About 3.8 million shares will be offered for public subscription and 30.25 million will be placed.
FSGL - whose key controlling shareholders are Hong Leong Group Singapore through its shareholding interests in Millennium & Copthorne Hotels plc, and Tai Tak Estates Sendirian Berhad - expects to have a market capitalisation of about S$884.7 million when listed on July 22.

[opmi]

FYI only. Tai Tak is the family vehicle that owned a bank that is part of UOB now. Still owned the UOB shares.


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[greengiraffe]

Ho Sim Guan... they don't need the money but what's the real reason behind the listing...

FYI only. Tai Tak is the family vehicle that owned a bank that is part of UOB now. Still owned the UOB shares.


Sent from my iPhone using Tapatalk

[opmi]

Ho Sim Guan... they don't need the money but what's the real reason behind the listing...

FYI only. Tai Tak is the family vehicle that owned a bank that is part of UOB now. Still owned the UOB shares.


Sent from my iPhone using Tapatalk

From news and friends, dongguan real estate is in the dumps. Probably selling the company at 0.5 RNAV to raise cash than redeploy in other cities.

Why buy at 0.5 RNAV? HK has plenty of better quality property developers at 0.3 book at cost.

[thinknotleft]

Don't see the pt of this IPO. There are cheaper/other way to get exposure to China real estate, eg hk stocks, or Ying Li (chengdu). What's the selling pt of FSG or difference between FSG n other listed china pty stocks?

[d.o.g.]

Don't see the pt of this IPO. There are cheaper/other way to get exposure to China real estate, eg hk stocks, or Ying Li (chengdu). What's the selling pt of FSG or difference between FSG n other listed china pty stocks?

In terms of governance risk, on the surface FSG is probably quite safe since there are important Singapore figures with their reputations at stake if it blows up, namely Kwek Leng Beng and Chew Gek Khim. Most of the other Chinese real estate stocks listed in Singapore do not have such sponsors with reputations to lose, except maybe Yanlord Land where the founder has settled in Singapore and become a citizen.

Of course, on the Hong Kong exchange there are also real estate companies run by reputable founders. For those willing to invest via the HKSE there are additional choices available.

[Stocker]

They are rather late in the property game in China, moreover a very small player . Do they have the scale to compete with the giants ?

[ahyu02]

Ho Sim Guan... they don't need the money but what's the real reason behind the listing...

FYI only. Tai Tak is the family vehicle that owned a bank that is part of UOB now. Still owned the UOB shares.


Sent from my iPhone using Tapatalk

From news and friends, dongguan real estate is in the dumps. Probably selling the company at 0.5 RNAV to raise cash than redeploy in other cities.

Why buy at 0.5 RNAV? HK has plenty of better quality property developers at 0.3 book at cost.

Opmi, I also notice many HK developers are priced ard 0.3 NAV.

Do you have any idea what causes this kind of 'bargain'?

Sorry to sidetrack this thread a bit. Thank you!

[opmi]

Ho Sim Guan... they don't need the money but what's the real reason behind the listing...

FYI only. Tai Tak is the family vehicle that owned a bank that is part of UOB now. Still owned the UOB shares.


Sent from my iPhone using Tapatalk

From news and friends, dongguan real estate is in the dumps. Probably selling the company at 0.5 RNAV to raise cash than redeploy in other cities.

Why buy at 0.5 RNAV? HK has plenty of better quality property developers at 0.3 book at cost.

Opmi, I also notice many HK developers are priced ard 0.3 NAV.

Do you have any idea what causes this kind of 'bargain'?

Sorry to sidetrack this thread a bit. Thank you!

Opaque company. Poor corp gov. Too many related party transactions. No dividends. No pending sales or disposal (My Precioussss...die die won't sell)

NAV is meaningless for OPMI unless there are catalysts for realisations and sharing of dividends.




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