TEE International’s real estate unit TEE Land lodged its preliminary IPO prospectus with the Monetary Authority of Singapore yesterday. The property portfolio injected into TEE Land by its parent comprises 24 projects, worth $394.6m as at 30 Nov 2012. Four pre-IPO investors have collectively subscribed for 4m shares in TEE Land for $4m. TEE’s managing director of real estate will lead TEE Land as CEO. TEE Land must still meet several conditions to complete its listing: It needs to raise at least $20m from its IPO at an issue price of $0.50 or more per share, and it must have a market cap of $150m or more at the time of the IPO. Our rating on TEE is currently UNDER REVIEW, pending a change in analyst.
TEE Land gets property portfolio worth $395m
TEE International’s (TEE) real estate unit TEE Land lodged its preliminary IPO prospectus with the Monetary Authority of Singapore yesterday. The property portfolio injected into TEE Land by its parent comprises 24 projects, worth $394.6m as at 30 Nov 2012. Six of the property development projects have been completed, 10 have been launched but not yet completed, and another eight have not been launched. Four pre-IPO investors have collectively subscribed for 4m shares in TEE Land for $4m.
TEE executives fill key positions at TEE Land
TEE’s shareholders have approved the proposed spin-off and separate listing of TEE Land at a meeting on 15 May. TEE’s managing director of real estate, Jonathan Phua Cher Chew, will lead TEE Land as CEO; Indochina MD Boon Choon Kiat will become TEE Land’s finance director; and Yap Shih Chia, TEE’s director of corporate finance and strategy, will be TEE Land’s chief operating officer.
More conditions to be met for listing
TEE’s share price has moved up significantly since the start of May (+28% to $0.475) on news of the progress in its spin-off plans. TEE has previously stressed that it plans to keep a 70-75% stake in the property business, which it sees as a valuable source of future earnings. TEE has also said that it plans to pay out part of the proceeds from the spin-off as a special dividend and to use the rest to fund its expansion into new ventures. We note that TEE Land must still meet several conditions to complete its listing: It needs to raise at least $20m from its IPO at an issue price of $0.50 or more per share, and it must have a market cap of $150m or more at the time of the IPO (TEE’s own market cap is currently $221m). Our rating and fair value estimate for TEE is currently UNDER REVIEW, pending a change in analyst.
TEE International’s (TEE) real estate unit TEE Land lodged its preliminary IPO prospectus with the Monetary Authority of Singapore yesterday. The property portfolio injected into TEE Land by its parent comprises 24 projects, worth $394.6m as at 30 Nov 2012. Six of the property development projects have been completed, 10 have been launched but not yet completed, and another eight have not been launched. Four pre-IPO investors have collectively subscribed for 4m shares in TEE Land for $4m.
TEE executives fill key positions at TEE Land
TEE’s shareholders have approved the proposed spin-off and separate listing of TEE Land at a meeting on 15 May. TEE’s managing director of real estate, Jonathan Phua Cher Chew, will lead TEE Land as CEO; Indochina MD Boon Choon Kiat will become TEE Land’s finance director; and Yap Shih Chia, TEE’s director of corporate finance and strategy, will be TEE Land’s chief operating officer.
More conditions to be met for listing
TEE’s share price has moved up significantly since the start of May (+28% to $0.475) on news of the progress in its spin-off plans. TEE has previously stressed that it plans to keep a 70-75% stake in the property business, which it sees as a valuable source of future earnings. TEE has also said that it plans to pay out part of the proceeds from the spin-off as a special dividend and to use the rest to fund its expansion into new ventures. We note that TEE Land must still meet several conditions to complete its listing: It needs to raise at least $20m from its IPO at an issue price of $0.50 or more per share, and it must have a market cap of $150m or more at the time of the IPO (TEE’s own market cap is currently $221m). Our rating and fair value estimate for TEE is currently UNDER REVIEW, pending a change in analyst.
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