Daily BriefsIPOs and Placements

Equity Capital Markets: Siam Makro Public, Daiwa House Logistics Trust, Sunac China Holdings and more

In today’s briefing:

  • Siam Makro Placement – First Look – Created a Food and Grocery Behemoth
  • Daiwa House Logistics Trust Pre-IPO – Muted Forecasts and Gearing Could Affect Growth Potential
  • Sunac Blocks – Just the Start for Sunac China and It Won’t Be the Last for Sunac Services
  • Daiwa House Logistics Trust IPO: The Flow of Things

Siam Makro Placement – First Look – Created a Food and Grocery Behemoth

By Zhen Zhou, Toh

  • Siam Makro Public (MAKRO TB) is looking to raise up to US$3.9bn (including over-allotment shares) in its upcoming Thailand placement. 
  • Siam Makro and Lotus’s target different market segments. It transformed Siam Makro into a COVID recovery play since Lotus’s, being B2C, suffered more during the lockdown in July/August.
  • We will look at the acquisition of Lotus’s prior to the placement, the impact of the placement, and share our thoughts on deal dynamics.

Daiwa House Logistics Trust Pre-IPO – Muted Forecasts and Gearing Could Affect Growth Potential

By Clarence Chu

  • Daiwa House Logistics Trust (DHLT SP), a Japan pure-play logistics REIT, is looking to raise US$343m in its Singapore IPO.
  • As of Jun 2021, its assets had an aggregate net lettable area (NLA) of 423,920 sqm and had an appraised valuation of approximately JPY80,570m (S$952.9m).
  • As of Oct 2021, portfolio occupancy stood at 96.3% and its assets had a weighted average lease expiry (WALE) of 7.2 years.

Sunac Blocks – Just the Start for Sunac China and It Won’t Be the Last for Sunac Services

By Zhen Zhou, Toh

  • Sunac China Holdings (1918 HK) is looking to raise US$561m from its top-up placement to repay loans and for general corporate purposes.
  • On top of that, the company will raise another US$269m from a selldown of 138m shares in Sunac Services Holdings (1516 HK)
  • This marks the start of Sunac China’s deleveraging effort but it also means there will be more to come for Sunac Services.

Daiwa House Logistics Trust IPO: The Flow of Things

By Arun George

  • Daiwa House Logistics Trust (DHLT SP) has launched an SGX IPO to raise gross proceeds of S$464 million ($343 million) at an IPO price of S$0.80 per unit. 
  • DHLT offers an attractive value proposition consisting of a blue-chip tenant base, a staggered lease expiry profile, manageable tenant concentration risk, a growth pipeline and low capex.
  • DHLT offers exposure to the only Japan pure-play REIT listed in Singapore.

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