Chillin' out till it needs to be funded
The Hendersen Land deals apart a $175 mln issue was up for grabs this week from Indonesia’s Sinar Mas group . However after two weeks of road show. According to the Finance Asia portal, the Widjaja family owned Sinar Mas wanted to bring the Finance company’s follow on IPO at a floor price of $0.25 cents or Rs 2555 and investors were looking for a lower entry price.
Deutsche Bank and UBS are leading the IPO and t he fair price computed was used as floor while investors wanted a dscount on the fair price to subscribe to the IPO.
That means overall:
a. The management thought the fair price was too low not good for more than fair price,
b. The management expected public response to be stronger in terms of brand or public recognition of its importance to the local economies
c. there is some rotation out of markets which outperformed last year ( Indonesia)
Petrosea from indonesia completed the IPO last week after it reduced the price tab investors hasd to be willing to pay
The sinar Mas family has performed in insurance with Mitsui Sumitomo after their Aisa paper exxercise imploded in 2001. Life Insurance and General account for 55% of Sinar Mas Mutiartha business
Hongkong is listed as the likely most performing market in Asia this year according to a spot online survey on Fiance Asia, and indonesia is a close second, allowing Sinar mas to survive with a minor delay. However this investor assessment believed India and China were not going to be in play this year.
DBS and HsBC had planned a $200 mln offer for Henderson Land but completed a successful round of $400 mln of 4.17% bonds with HSBC, JPM MS and StanC in HongKong today.
The deal overwhelmingly went to Asian investors, which were allocated 91%. The rest went to Europe. Fund managers were allocated 48%, private banks 27%, banks 14%, insurers 8% and companies 3%. The notes were reoffered at 99.226 to yield 4.927%.