LIAN Beng Group has restructured its businesses and will be spinning off its property development unit, SLB Development, to be listed on the Catalist Board of the Singapore Exchange (SGX).
SLB's preliminary offer document, out on the SGX on Tuesday, did not as yet contain details on the number and issue price of shares that will be offered.
But Lian Beng's announcement, out the same day, said that SLB would be the holding company for the companies in the group that are engaged in the property development business in connection with the Catalist listing. This gives it a presence both in Singapore as well as China.
SLB would be involved in different types of property development projects such as small to large scale residential developments, mixed-use developments, industrial and commercial developments that cover a broad spectrum of needs. "This enables us to diversify our business across various asset classes in the industry, so as to better manage our exposure to the fluctuations in demand and/or changes in regulations for each type of property development," its preliminary offer document said.
It added that SLB's strengths include: its established track record as a developer undertaking various types of property development; its established network of business relationships with other property developers and contractors; and its experience venturing beyond Singapore.
Its future plans include focusing on developing quality residential, mixed-use, industrial and commercial properties, launching and starting construction for projects in its pipeline, acquiring new development sites for its land bank, and expanding into overseas property development.
SLB Development posted revenues of S$87.6 million in FY 2017, which it said was derived from its development property at Mandai Foodlink that was completed and handed over to the purchasers during the period; its net profit totalled S$15.8 million and its pre-invitation earnings per share was 2.35 Singapore cents in FY 2017.
SLB said it faces risk factors such as the macroeconomic, political and regulatory risks present in the environments in which it operates; it also cautioned that it may not be able to obtain all the necessary licences for its property development projects.