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Singapore stock market and companies daily report (Gaylin Holdings, Olam International, Keppel Land) (October 18, 2012)

Contributed by Shares Investment

Gaylin Seeks to Raise $38.5m From IPO
Singapore-based rigging and lifting solutions provider to the offshore oil and gas industry, Gaylin Holdings, plans to raise net proceeds of $35.4 million through a listing on the Mainboard of the Singapore Exchange. The group launched its initial public offering (IPO) of 110 million new shares at $0.35 each yesterday. Of these, 5 million offer shares will be open for public subscription while the remaining 105 million are placement shares. Post IPO, this offering will make up 26.8 percent of the group’s enlarged share capital of 410 million shares. This is assuming that CIMB Securities, underwriter and placement agent for the IPO, does not exercise an over-allotment option Gaylin has granted it. The option allows for the subscription of up to 22 million additional shares, or not more than 20 percent of the new shares.
Significance: Going forward, the company intends to use the net proceeds to expand its operations in Malaysia, as well as others parts of Asia and other markets to spur growth. It is also planning to distribute at least 30 percent of the group’s FY13 and FY14 net profits as dividends to shareholders.

Olam Issues $400m Note At 6%
Mainboard-listed commodity firm, Olam International has priced a $400 million issuance of 10 year senior notes under its US$2 billion euro medium term note programme. The notes, to be issued at an issue price of 100 percent of their principal amount in denominations of $250,000 are expected to be issued on 25 October 2012, with maturity due on 25 October 2022. The transaction which was priced at a final coupon of 6 percent, was oversubscribed with an order book in excess of $1.4 billion and had attracted more than 70 investors across private banking, institutional accounts and banks. The pricing was well within the 6.25 percent initial guidance region. Shekhar Anantharaman, Olam’s executive director of finance and business development said: “We are pleased with the strong order book as well as investor diversification offered by the participation from both institutional investors and private banks.”
Significance: The issue which is the longest tenor and largest issue size achieved by Olam in the Singapore dollar bond market to date will boost Olam’s liquidity position and extend its debt maturity profile to achieve the optimum debt maturity tenor required to meet its strategic plan objectives.

Keppel Land’s 3Q12 Earnings Climbed 28.5%
Keppel Land posted a 28.5 percent increase in net profit to $74.5 million for the three months ended 30 September 2012, while revenue rose 49 percent to $166.4 million from $111.7 million a year earlier. Contributing to the surge in revenue for the quarter were a $62 million increase for the property trading segment, $2 million for the fund management segment, and $1.8 million for the hotels and resorts segment, partly offset by a $7.7 million fall in revenue from the property investment segment and a $3.4 million drop in the “others” segment. However, cost of sales more than doubled from $46 million to $120 million, resulting in 3Q12 gross profit falling 29.4 percent to $46.3 million. Nonetheless, the property group’s 3Q12 results remained stellar boosted by a non-recurring gain of $16.7 million from the divestment of its 22.7 percent interest in Saigon Centre Phase 2. Its associated companies – Marina Bay Suites and Keppel REIT – also contributed to the strong performance.
Significance: Keppel Land’s stellar performance is likely to keep up for FY12 with its continuous efforts to grow its portfolio in Australia and Singapore and expansion to strengthen its presence in Chengdu, China.