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Stocks In Focus (TEE Land, Singapore Airlines, Sembcorp Marine) – 31/05/13
TEE Land Launches IPO To Raise $57.8m
TEE Land, a property development unit of TEE International has launched its initial public offering (IPO) and targets to raise net proceeds of $57.8 million from a total of 115 million shares at $0.54 each. TEE International will retain a stake in TEE Land of between 67.2 percent and 70.7 percent, depending on whether the over-allotment option is exercised. Meanwhile, apart from continue to specialise in residential property developments, TEE Land said in prospectus that it will expand into commercial and industrial property development projects. Expected to start trading on the mainboard of the Singapore Exchange on 6 June, TEE Land’s offer was opened at 9am yesterday, and closes at noon on 4 June.
Significance: Of the net proceeds of $57.8 million raised, TEE Land said it plans to use $26 million to fund expansion via new property development projects, joint ventures, acquisitions, and investments, up to $15 million to repay loans and advances to TEE International, $6 million to repay bank loans and the rest for working capital.
Singapore Airlines Boosts Fleet Size With US$17b Deals
Singapore Airlines (SIA) has agreed to order 30 Airbus A350-900s and 30 Boeing 787-10Xs in deals valued at more than US$17 billion, among the biggest in the airline’s history. The agreement with Airbus comprises of 30 firm-ordered A350-900s for delivery from FY16/17, with options for 20 more. SIA has options to convert the orders to the larger A350-1000s. The deal with Boeing makes SIA the launch customer for a proposed stretched version of the 787 Dreamliner, intended for crowded intra-Asian routes. Scheduled for delivery from FY18/19, the order is conditional upon Boeing formally launching the B787-10X programme. “These new aircraft will provide opportunities to grow and renew our fleet and enhance our network, benefiting customers by offering more travel options and the latest in-flight cabin products,” said SIA’s chief executive officer, Goh Choon Phong.
Significance: With the additional orders, SIA has 126 firm aircraft commitments in place with Airbus and Boeing. The deal comes 7 months after SIA unveiled a US$7.5 billion order for 5 Airbus A380s and 20 A350s for additional capacity growth and fleet renewal.
Sembcorp Marine Secures US$220.5m Contract From BOT Lease Co
PPL Shipyard, a subsidiary of Sembcorp Marine, secured a US$220.5 million contract for a high-specification jack-up rig from BOT Lease Co. BOT Lease Co, a leasing company of The Bank of Tokyo-Mitsubishi UFJ, is scheduled to take delivery of the rig at end January 2015. The rig will be built based on PPL Shipyard’s established proprietary Pacific Class 400 design, a high-specification jack-up rig that is capable of operating in deeper waters, higher pressure and higher temperature wells. Commenting on the contract, Douglas Tan, managing director of PPL Shipyard said the jack-up rig order is a reflection of the optimism that the owner has in the jack-up rig market. PPL Shipyard has received 12 orders for such jack-up rigs since its inception, proving its reception in the industry.
Significance: This contract came in the same week after another subsidiary of Sembcorp Marine bagged a US$596 million contract for a jack-up rig. The two contracts will be an addition to the strong order book of Sembcorp Marine standing at $13.6 billion as at 21 February 2013 with completion and deliveries stretching till 2019.
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