Sincap To Offer 32.5m Shares In Catalist Listing
Chinese gypsum mining company, Sincap Group is looking to tap into local equity markets with a planned listing on the Catalist board of the Singapore Exchange. The company is offering 32.5 million shares, comprising of 25.5 million new shares and seven million vendor shares at $0.20 apiece. Sincap hopes to raise around $5.1 million in gross proceeds with net proceeds of $2.3 million being earmarked for use in diversification of products and for general working capital. It has plans to construct and commission a K-gypsum powder plant which will be used in the manufacture of moulds for precision casting as well as plaster casts for medical uses. Sincap possesses mining and exploration rights to some of the largest gypsum reserves in Dawenkou Basin in Shandong province. Sincap’s chairman and chief executive Fu Hao said that its decision to list is timely at its current stage of development to realise its “untapped potential in its gypsum business”.
Significance: Despite volatility in the stock markets recently, firms have begun pushing ahead with their IPO exercises in hopes that pent up demand and liquidity will help drive up trading prices.
CapitaMall Trust Delivers Stable Growth In 2Q12
CapitaMall Trust’s (CMT) manager announced today that the trust had achieved respectable growth of 5.5 percent in its 2Q12’s distributable income. CMT achieved distributable income of $79.6 million in 2Q12 compared with $75.5 million in 2Q11. Distribution per unit (DPU) for 2Q12 will be $0.0238 which is 0.8 percent higher than 2Q11’s $0.0236. Combined with 1Q12’s distribution of $0.023, total DPU for 1H12 would be $0.0468 translating into an annualised distribution yield of 4.9 percent based on CMT’s closing price of $1.945 on 17 July 2012. CMT’s gross revenue grew 3.7 percent year-on-year while net property income increased 5.2 percent over 2Q11. In the first half of 2012, CMT managed to renew 251 leases with positive rental reversions of 6.4 percent over preceding rental rates. CMT’s portfolio registered almost full occupancy of 98.6 percent as at 30 June 2012. James Koh Cher Siang, chairman of CMT’s manager opined that despite global economic concerns, Singapore’s low unemployment rate and Singapore’s projected tourism arrivals will help to support the republic’s retail spending.
Significance: With asset enhancement works well underway at various assets in its portfolio, CMT looks primed to further grow its distributable income when these assets come online fully.
Keppel T&T’s 1H12 Earnings Fall Despite Revenue Growth
Keppel Telecommunications & Transportation (Keppel T&T) posted a fall of 9.2 percent in 1H12 earnings despite a 16.3 percent jump in revenue. Keppel T&T attributed the revenue gains to higher revenue generated by its data centre and logistics divisions. The firm also reported that its data centres and warehouses saw higher occupancy during the period. However, higher overheads and lower contributions from associates offset revenue gains as Keppel T&T’s earnings dipped to $28.7 million from $31.6 million a year ago. Despite the poorer bottom line numbers, the firm gave a favourable outlook for its logistics business where it expects occupancy rates to remain high. It views the demand for logistics services both in China and South-east Asia to remain steady. The firm also added that the demand for space at its data centres remains strong.
Significance: In the year-to-date, Keppel T&T’s Securus Fund has acquired several interests at data centres across the globe. The firm said that the fund will continue to grow through further acquisitions. It also added that it is evaluating new development opportunities to expand its logistics business.