Real estate firm First Sponsor Group launches $884m Singapore IPO

34.05 million shares are up for grabs.

China-based real estate firm First Sponsor Group Limited launched its Singapore IPO on July 10, opening 34.05 million shares at $1.50m per share.

FSGL is backed by Hong Leong Group, one of the country’s largest real estate conglomerates. Among Hong Leong’s businesses is City Development Limited.

“The support from both our established key controlling shareholders Hong Leong Group Singapore through its shareholding interests in Millennium & Copthorne Hotels plc (“M&C UK”), and Tai Tak Estates Sendirian Berhad (“Tai Tak”), and the efforts of our management team have enabled us to grow our business in the PRC property market. The proposed listing of the Group on the SGX-ST is timely, as we embark on our next phase of growth and are ready to further enhance our visibility and profile,” noted Neo Teck Pheng, Group Chief Executive Officer of FSGL.

Here’s more from FSGL:

The Invitation of 34,050,000 Invitation Shares of S$1.50 each represents approximately 5.8% of the Group’s enlarged share capital. The Invitation is structured as follows:
- 3,800,000 Offer Shares at S$1.50 for each Offer Share by way of public offer; and
- 30,250,000 Placement Shares at S$1.50 for each Placement Share by way of placement, payable in full on application.

Concurrent but separate from the Invitation, each of Mellford Pte Ltd (a member of the Tecity Group) and Mr. Yip Siu Ching (collectively, the “Cornerstone Investors”) has entered into cornerstone subscription agreements with FSGL to subscribe for an aggregate of 9,750,000 new shares at the Invitation Price.

Based on the Invitation Price of S$1.50 per share and the Group’s post-Invitation share capital of 589,814,949 shares, the Invitation Shares are priced at a 24.8% discount to its adjusted appraised net asset value per share of 199.57 Singapore cents as at 31 December 2013.

The public offer will open on 11 July 2014, and will close at noon on 17 July 2014. Listing and trading of FSGL’s shares on the Main Board of the SGX-ST is expected to commence at 9.00 a.m. on 22 July 2014.

The estimated net proceeds of approximately S$59.7 million will be used to fund the Group’s future property development projects including acquisition of land use rights, future development or acquisition of properties held for income (if any) and general corporate and working capital purposes.