1MDB IPO [Source: IFR]

Got this fwd email from someone lately.

Malaysia’s state-owned investment company 1Malaysia Development (1MDB) has started preparations for its long-awaited IPO, after CIMB’s US$1.09bn placement.

1MDB has sent out requests for proposals to banks ahead of a potential IPO to raise US$1bn–$2bn. Further details on the RFPs, sent on Monday, will be provided to banks that sign a non-disclosure agreement.

The IPO would comprise 1MDB’s power assets, a source said, adding that the IPO size was only a guess at this stage.

Malaysia’s IOI Properties rose sharply in debut trade to M$3.15 (US$0.95) from its restricted offer for sale price of M$1.76 each. Shareholders of IOI Corp were offered one share of IOI Properties for every six shares of IOI at M$1.76 each.

AmInvestment Bank, RHB Investment Bank and Standard Chartered were the joint principal advisers of the offer.

Keppel Telecommunications & Transportation, a unit of Temasek-backed Keppel Corp, has mandated banks for its IPO of S$500m (US$393m). Credit Suisse, DBS and Standard Chartered are the joint global co-ordinators and bookrunners with Deutsche Bank and Goldman Sachs.

The IPO, the first of a data centre trust in Asia, outside Australia, is expected in the first half of this year. The final IPO size will depend on the assets to be included in the REIT and the promoter stake.

Keppel T&T has data centres in Singapore, Malaysia, Australia, Britain, Ireland and the Netherlands, some of which Securus Data Property Fund owns. Securus is a Sharia-compliant data centre fund that Keppel T&T runs with AEP Investment Management. 

Biostime International, a manufacturer of babycare products, has raised HK$2.5bn (US$323m) from an offering of convertible bonds.

The offering, resulting from China’s relaxation of one-child policy and the company’s recent moves to transform itself into a nationwide player, generated good response and was covered within an hour.

Biostime’s share price had doubled in the six months before the deal was launched, so the bond was priced at the investor-friendly end. The yield to put/maturity was set at 2.875%, versus a guidance range of 1.875%–2.875%, while the conversion premium was fixed at the bottom of the indicative range of 27.50%–40.00% above the reference price of HK$71.25. 

The bond has a tenor of five years and an investor put after three years.

The offering drew a few large anchor orders and there were 35 investors on the book, including long-only and hedge funds. The top five investors took up about 40% of the allocation.

There is an option to increase the deal size by HK$600m, which can be exercised on or before February 20.

The demand for the CBs actually allowed the lead to exercise that option immediately, but it chose not to so as to ensure decent trading in the aftermarket. It traded just above par this morning.

At the final terms, the implied volatility was about 25%, credit-spread assumption was 350bp and stock borrow cost 5%, giving a bond floor of around 95.

Proceeds will be used to finance expansion of existing businesses as well as meet general corporate purposes.

HSBC was the sole global co-ordinator and sole bookrunner.

Hong Kong Electric Investments, a proposed spin-off of Hong Kong-listed Power Assets, is looking to pay a generous underwriting fee for its up to HK$27.9bn (US$3.6bn) Hong Kong float. According to the preliminary prospectus, the business trust will pay an underwriting fee of 2.5% and an incentive fee of 0.5%.

This is higher than the IPO fees of both China Cinda Asset Management and China Everbright Bank. The former paid a 2.5% underwriting fee for its US$2.8bn deal, while the latter paid an underwriting fee of 1.5% and an incentive fee of 0.5% for its US$3.2bn float.

Assuming the HKE Investments deal is priced at the top of the indicative range and a 3% fee is paid out, banks on the deal will receive US$108m.

Goldman Sachs and HSBC joint global co-ordinators and joint bookrunners on the deal. There are also a number of co-lead managers including Barclays, BNP Paribas, BOC International, Citigroup, Deutsche Bank, DBS and Morgan Stanley.

Global Gaming Asset Management has launched a Ps7.4bn–Ps7.6bn (US$164m–$169m) block in Philippines’ Bloomberry Resorts. The vendor is selling 921.1m shares in the Ps8–Ps8.25 range, an 8.1%–10.9% discount to the January 15 close of Ps8.98. Global Gaming is selling its entire 8.7% stake in Bloomberry.

Cantor Fitzgerald, Credit Suisse and Deutsche Bank are the joint bookrunners. 

The chairman and executive directors of Hong Kong restaurant chain operator Tsui Wah Holdings are in the market selling their shares to raise up to HK$592m (US$76m). The sellers are offering 116m shares at an indicative price range of HK$4.99–$5.10 each or at a discount of 5.9%–7.9% to the pre-deal spot.

There is a 60-day lock-up on the vendors. Nomura is the sole bookrunner.

Japan’s Industrial & Infrastructure Fund Investment Corp will be launching a share sale of ¥7.5bn (US$72m) on January 22. The company will be selling 8,668 units at a 2.5%–5% discount to the January 15 close of ¥871,000. The transaction will total ¥7.5bn at the January 15 close.

Around 4,334 units each will be sold to international and domestic investors. There is an overallotment option of 432 units. Book will close on January 24.

Morgan Stanley, Nomura and SMBC Nikko are joint bookrunners. 

Pipeline

• January 15 – Shaanxi Coal Industry (China) US$1.6bn Shanghai IPO. CICC, BOCI, Citic

• January 16 – OUE Commercial Trust (Singapore) Around US$350m REIT IPO. CIMB, Citi, JPM, OCBC, RHB, StanChart

• January 22 – Hong Kong Electric Investments (Hong Kong) US$4bn–$5bn SEHK business trust IPO. GS, HSBC

• January 22–24 – Mitsubishi Motors Corp (Japan) US$2.2bn primary follow-on. MS, Nomura, BofA Merrill

• January 22–27 – Advance Residence Investment Corp (Japan) US$120m primary follow-on. Mizuho, MUFJMS

• January 22–27 – Comforia Residential REIT (Japan) US$210m primary follow-on. Mizuho, SMBC Nikko

• January 29 – Hulic REIT (Japan) US$515m REIT IPO. Mizuho, Nomura

• January 2014 – 8990 Holdings (Philippines) Up to US$300m follow-on. CIMB, SB Capital

• Q1 2014 – Akara Resources (Thailand) US$500m IPO. CIMB, Macquarie, Maybank, MS

• Q1 2014 – L&T Infrastructure Development Projects (India) US$600m–$700m SGX business trust IPO. DB, JPM, Nomura, StanChart

• Q1 2014 – 7-Eleven Malaysia (Malaysia) Up to US$250m IPO. Maybank, UBS, CLSA, CIMB

• Q1 2014 – Lotte Shopping REIT (South Korea) Up to US$1bn SGX REIT IPO. DBS, GS, Nomura, StanChart

• H1 2014 – Malakoff Corp (Malaysia) Up to US$1bn IPO. CIMB, CS, JPM, Maybank, BofA Merrill, DB, HSBC, MS, Nomura, RHB

• H1 2014 – China Grand Automotive Services (China) US$500m–$1bn SEHK IPO. CICC, GS

• H1 2014 – Jasmine International Infrastructure Trust (Thailand) US$1.6bn–$2.2bn business trust IPO. Bualuang, MS

• H1 2014 – Shanghui International Holdings (China) US$5bn SEHK IPO. BOCI, Citic, GS, MS, StanChart, UBS

• H1 2014 – Icon Offshore (Malaysia) Up to US$300m IPO. BNP, CS, Maybank

• 2014 – Japan Display (Japan) US$2bn IPO.

• 2014 – Sunshine100 Real Estate Group (China) US$300m IPO. CICC, Citi

• 2014 – Sincere Group (China) Up to US$350m SEHK IPO. MS

• 2014 – Jinhui China (China) Up to US$400m SEHK IPO. BofA Merrill

• 2014 – Golden Mountain (China) Up to US$200m SEHK IPO. Citi

• 2014 – Jinhua Concrete Pile Group (China) Up to US$200m SEHK IPO. Citic, MS, StanChart

• 2014 – Asia Potash Group (Laos) US$500m SEHK IPO. BofA Merrill, Citi, DB

• 2014 – Triplex (China) Up to US$200m SEHK IPO. BofA Merrill, CMS, GS

• 2014 – Harbin Bank (China) US$1bn SEHK IPO. ABCI, BOCI, CICC, CMS

• 2014 – Bangkok Airways (Thailand) US$200m–$300m IPO. Bualuang, Citi, CS, DBS

• 2014 – Fuhua Agricultural Technology (China) Up to US$200m SEHK IPO. Citi, Jefferies

• 2014 – ACB India (India) US$150m IPO. Edelweiss, IDFC, JPM, Macquarie, Axis, ICICI, Yes

• 2014 – Mando China (China) US$250m SEHK IPO. DB, MS

• 2014 – Mytrah Energy Trust (India) US$400m–$500m SGX business trust IPO. MS, StanChart

• 2014 – South Beauty (China) Up to US$200m SEHK IPO. CICC, DB, UBS

• 2014 – Century Energy (China) US$150m SEHK IPO. BNPP, ICBCI, MS

• 2014 – Golden Bridge United Financial Leasing (China) Up to US$300m SEHK IPO. BoCom, JPM

• 2014 – China Railway Material (China) Up to US$2bn A/H IPO. CICC, Citic Securities, UBS, Citi, CS, HSBC

• 2014 – Rashtriya Ispat Nigam (India) Around US$450m IPO. Deutsche, UBS

• 2014 – Altain Khuder (Mongolia) US$300m SEHK IPO. BofA Merrill, Macquarie

• 2014 – Hankook Silicon (South Korea) Up to US$371m IPO. Daewoo, Daishin, Woori

• 2014 – China Shipping Nauticgreen (China) Up to US$190m SEHK IPO. DB, CMS

• 2014 – Cathay Industrial Biotech (China) Up to US$100m Nasdaq IPO. DB, Jefferies, MS

• 2014 – Zhong Da Mining (China) Up to US$350m SEHK IPO. CCBI, HSBC, UBS

• 2014 – Tianhe Chemicals Group (China) Up to US$1bn SEHK IPO. BofA Merrill, Citi, JPM, MS

• 2014 – Hunan Zhonghe Energy (China) Up to US$600m SEHK IPO. Citi, CS

• 2014 – Longjiang Bank (China) Up to US$500m HK IPO. BofA Merrill, Nomura

• 2014 – Harita Jayaraya (Indonesia) US$250m SGX IPO. Citi, DBS, CICC

• 2014 – 360buy.com (China) Up to US$3bn US IPO

• 2014 – Newmont Nusa Tenggara (Indonesia) US$500m IPO. BNP, UBS

• 2014 – The Basic House Global (China) US$200m–$300m SEHK IPO. GS, UBS

• 2014 – Sembawang E&C (Singapore) US$150m IPO. CIMB, Nomura, StanChart

• 2014 – China Network Systems (Taiwan) US$1bn SGX business trust IPO. Citi, DBS, GS, MS, StanChart

• 2014 – Bank of Shanghai (China) US$2bn A/H IPO. Guotai Junan, Citic, GS Gao Hua; ICBCI, JPM, MS, UBS

• 2014 – China Guangfa Bank (China) US$5bn A/H IPO.BofA Merrill, Citi, DB, GS, CS, Macquarie; Citic, Guangfa, GS GaoHua, Haitong, Yingda

• 2014 – LG Siltron (South Korea) Up to US$450m IPO. Tong Yang, UBS, Woori

• 2014 – Posh Semco (Singapore) US$300m IPO. BofA Merrill, DBS, OCBC

• 2014 – Hyundai Oilbank (South Korea) Up to US$2bn IPO. Citi, Woori, BofA Merrill, Daewoo, Hana Daetoo, Shinhan

• 2014 – NW Hotel Investments (Hong Kong) US$800m SEHK IPO. DB, HSBC, JPM, BOCI, StanChart

• 2014 – Dyviacom Intrabumi (Indonesia) US$300m–$500m re-IPO. DB, CIMB, CS, Buana

• 2014 – Indonesia Air Asia (Indonesia) US$200m IPO.CIMB, CS

• 2014 – ILFS (India) US$400m SGX business trust IPO. DB, JPM, Nomura, CIMB

• 2014 – Iskander Waterfront (Malaysia) Around US$300m IPO. CIMB, DB, JPM, RHB

• 2014 – SMC Global Power Holdings (Philippines) Ps27.3bn (US$619m). CIMB, StanChart, UBS, ATR Kim Eng, SB Capital

• 2014 – China National Biotec Group (China) Up to US$2bn SEHK IPO. CICC, MS, UBS

• 2014 – Energy Australia (Australia) US$3bn IPO. BofA Merrill, Deutsche, UBS

• 2014 – Blue Bird Taxi (Indonesia) Up to US$320m IPO. CS, Danareksa, UBS, CIMB