Source : The Business Times, December 29, 2007
Net proceeds from IPO expected to exceed $30m
HOME-GROWN property group Roxy-Pacific Holdings plans to raise capital through a listing on the Singapore Exchange mainboard.
The group lodged its preliminary prospectus with the Monetary Authority of Singapore yesterday, with plans for an initial public offering of 160 million shares, including 32 million vendor shares.
Roxy-Pacific was established in 1967. Besides being a residential property developer, it owns the Grand Mercure Roxy Hotel in Marine Parade and a number of shop units in Roxy Square Shopping Centre.
The issue price is not known yet but based on the prospectus, the net proceeds are expected to exceed $30 million, with about $15 million earmarked for expansion of its property development business.
It plans to develop smaller to medium-sized land plots for 'home buyers who are HDB-flat upgraders, and the middle to upper-middle income families'.
Another $10 million will go towards enhancing the Grand Mercure hotel, while $5 million will be used to repay bank loans.
Roxy-Pacific believes the outlook for the Singapore property market is positive. It said that, based on Urban Redevelopment Authority flash estimates, prices of private residential properties rose by 8.3 per cent in 3Q07 over the preceding quarter.
The hotel industry is also expected to continue booming, with the Singapore Tourism Board looking for $13.6 billion in tourism receipts this year and $30 billion by 2015.
The company recorded a net profit of $4.84 million for FY2006, up from $1.94 million for FY2005.
Its net asset value, as at Dec 31, 2006, was $252.7 million.
Hong Leong Finance is the issue manager for the IPO.
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