SLB Development, the property development spin-off from mainboard-listed Lian Beng Group, registered its offer documents on April 11 for its proposed Catalist listing.
It is offering 238 million shares at S$0.23 each, comprising eight million shares by way of public offer, and 230 million by way of placement. This pegs the gross proceeds at S$54.7 million. This represents 26.07 per cent of SLB's post-invitation share capital.
Market capitalisation as at the initial public offering (IPO) will be S$210 million. Lian Beng will retain 73.93 per cent interest in SLB after the invitation.
The listing is expected to raise net proceeds of S$51.4 million with 32.9 per cent of gross proceeds to go towards replacing its land bank and overseas expansion. Another 33.6 per cent will go towards funding existing property development projects in the pipeline and general working capital purposes. The rest will go towards repaying a bridging loan and listing expenses.
SAC Capital is the sponsor and underwriter for the invitation.
SLB's portfolio comprises five residential and mixed-use property developments such as Spottiswoode Suites and KAP & KAP Residences, three industrial property developments including Eco-Tech @ Sunview and Mandai Foodlink, as well as the Hexacube freehold commercial property development in Singapore.
Its pipeline property development projects to be launched for sale in H2 2018 include three residential sites - Serangoon Ville, Rio Casa and Lorong 24 Geylang - and two industrial property development projects, Khong Guan Industrial Building and 50 Lorong 21 Geylang. It also owns a stake in a mixed-use property development project in Hebei province in China.
Its ongoing and pipeline projects amount to a gross development value of about S$892 million.
It will explore opportunities for wholly owned property development projects, venture into hospitality developments, and source for property development projects in the Asia-Pacific, Western Europe and North America.
Trading is scheduled to begin on Apr 20. The invitation will close at noon on Apr 18.