SLB Development offering 238m shares at 23 cents apiece; IPO price values it at $210m
A spin-off from mainboard-listed construction company Lian Beng Group is aiming for a Catalist listing.
SLB Development is offering 238 million shares at 23 cents each, comprising eight million shares by way of public offer and 230 million on placement to raise gross proceeds of $54.7 million. Its initial public offering (IPO) price would value the firm at $210 million, it announced yesterday.
Lian Beng Group will retain 73.93 per cent of SLB, which is now a wholly owned unit.
The listing is expected to raise net proceeds of $51.4 million with 32.9 per cent of gross proceeds going towards replacing its land bank and overseas expansion. A further 33.6 per cent is earmarked for funding development projects already in the pipeline and general working capital purposes. The balance will go towards repaying a bridging loan and listing expenses.
SLB executive director and chief executive Matthew Ong said the firm’s strength lies in its joint-venture strategy, which helps it manage risks and undertake larger projects.
SLB’s portfolio comprises five residential and mixed-use developments such as Spottiswoode Suites and KAP & KAP Residences. It also has three industrial property developments, including Eco-Tech @ Sunview and Mandai Foodlink, and the Hexacube freehold commercial project here. Its projects to be launched for sale in the second half of this year include three residential sites – Serangoon Ville, Rio Casa and Lorong 24 Geylang – and industrial projects Khong Guan Industrial Building and 50 Lorong 21 Geylang.
It also owns a stake in a mixed-use property development project in China’s Hebei province.
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