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Temasek’s 2-week selling spree raises US$779 million

Incorporated in 1974, Temasek is a global investment company headquartered in Singapore. (PHOTO: Temasek website)

By Julia Fioretti

(Bloomberg) -- Singapore state investment company Temasek Holdings Pte. has been selling stakes in companies from its portfolio recently, raising a total of US$779 million in the past two weeks.

On Tuesday, Temasek fetched US$186 million through the sale of shares in Thailand’s Intouch Holdings Pcl, while last week it raised US$507 million from two block trades in South Korea’s Celltrion Inc. and its distribution affiliate Celltrion Healthcare Co.

Other firms in Asia have also sought to take advantage of a market rebound to sell stock after the coronavirus pandemic sent many of the world’s equity indexes into bear markets. While deals fell off a cliff as issuers and sellers stayed on the sidelines during the rout, they have recently picked up: block trades raised US$2 billion in the week of March 30, the most this year, data compiled by Bloomberg show. Companies have also been tapping the market for funding by selling additional shares.

For Temasek, the sales come at a good time. The Singapore investment behemoth is expected to act as a lifeline for many companies in its portfolio. Domestic businesses have traditionally represented more than a quarter of its investments and its 12 biggest shareholdings by value plunged by almost $24 billion this year through March 20. The investor, which had S$44.2 billion in cash, cash equivalents and short-term investments as of March 31, 2019, has begun re-evaluating new deals so it can prepare to pump funds into existing assets instead.

UPCOMING LISTINGS:

  • Akeso Inc.

    • Hong Kong stock exchange

    • Size up to $350m

    • Pre-marketing from April 6

    • Morgan Stanley, JPMorgan

  • Zhejiang Yuejian Intelligent Equipment Co.

    • Shanghai stock exchange

    • Size $128.5m

    • Listing date TBD

    • Zheshang Securities

  • Tycoon Group Holdings Ltd.

    • Hong Kong stock exchange

    • Size $37m

    • Trading April 15

    • Shenwan Hongyuan, Soochow Securities

More ECM situations we are following:

  • Morgan Stanley, Credit Suisse Group AG and Haitong International Securities Group were among the biggest participants in a series of margin loans to Luckin Coffee Inc.’s founder before accounting fraud allegations triggered a collapse in the stock and caused him to default, a person with knowledge of the matter said.

  • Citigroup Inc. has been picked for a top role on WeDoctor’s Hong Kong initial public offering, replacing Credit Suisse, according to people familiar with the matter.

  • AMTD International Inc. shares rose as high as S$14.32 in afternoon trading Wednesday after opening at S$13.95 in their Singapore debut.


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