Lian Beng unit gunning for Catalist listing

Artist’s impression of KAP & KAP Residences, a mixed-use project by SLB Development.

SLB Development, a spin-off from mainboard-listed Lian Beng Group, is seeking to be listed on the Singapore Exchange’s Catalist Board.

The property developer is offering 238 million shares at $0.23 each, comprising 230 million shares by way of placement and eight million by way of public offer.

The initial public offering (IPO) price would bring SLB’s market capitalisation to $210 million. Lian Beng will retain a 73.93 percent stake in SLB following the invitation.

SLB expects the IPO to raise $51.4 million in net proceeds and $54.7 million in gross proceeds.

In a statement, it revealed that 32.9 percent of the gross proceeds will be used to replenish the group’s land bank and overseas expansion, while another 33.6 percent is earmarked for funding existing property development projects in the pipeline, as well as general working capital purposes.

The company’s portfolio comprises five residential and mixed-use projects such as Spottiswoode Suites and KAP & KAP Residences, three industrial developments including Mandai Foodlink and T-Space @ Tampines, and the Hexacube freehold commercial property.

Its pipeline of property development projects include three residential sites; Rio Casa, Serangoon Ville and Lorong 24 Geylang, and two industrial projects; 50 Lorong 21 Geylang and Khong Guan Industrial Building. SLB also owns a stake in a mixed-use project in China’s Hebei province.

SLB noted that while it is focusing on the execution of its pipeline of property projects, the company will “continue to work with its partners to seek and acquire well-located sites and buildings where it can utilise innovative designs and lifestyle themes to develop quality properties”.

“SLB will also explore suitable opportunities to undertake wholly-owned property development projects, and venture into hospitality developments,” it added.

The invitation will close at noon on 18 April, while trading of SLB shares will commence on 20 April.

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Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg

This post was originally posted on Property Guru Property Market News Section