Retailer Courts Asia launches Singapore IPO
Electronics and furniture retailer Courts Asia Ltd, which operates stores in Singapore and Malaysia, launched an initial public offering in Singapore to raise S$137 million ($112 million) mainly to fund its expansion in Indonesia.
Copyright Reuters, 2012
The listing comes after the company, a household name in Singapore, failed to list its shares in 2010 while a plan to sell the firm was also scuppered.
Courts is offering 178 million shares, of which 60 million are new shares. The offer price of S$0.77 per share is at the top end of an indicative price range due to strong support from institutions, the company said in a statement on Monday. It plans to list on October 15.
Courts plans to use 91.3 percent of the net proceeds to tap the growing middle class in Indonesia, which it said is a large and fast-growing market that is still under-penetrated.
Courts has four cornerstone investors - JF Asset Management Ltd, New Silk Road Investment Pte Ltd, Target Asset Management Pte Ltd and Value Partners Hong Kong Ltd - which have taken up 44 percent of the IPO.
The Hongkong and Shanghai Banking Corp Ltd is the sole global co-ordinator, bookrunner, underwriter and issue manager of the IPO. UOB Kay Hian Private Ltd is the public offer co-ordinator and sub-placement agent.