SINGAPORE (Apr 11): SLB Development, the property developer which was spun off from Lian Beng Group, will be selling 238 million new shares at 23 cents each in conjunction with its Catalist listing.

See: Lian Beng property spin-off SLB Development lodges prospectus

Of the IPO shares, 8 million units will be available to the public while the remaining 230 million units will be available by way of placement.

The IPO is expected to raise gross proceeds of $54.7 million and net proceeds of $51.4 million, excluding listing expenses.

SLB Development intends to use 32.9% of the gross proceeds to replenish its land bank and overseas expansion, while 33.6% will go towards funding existing property development projects in the pipeline, as well as general working capital purposes.

Based on the issue price of 23 cents each, the market cap of SLB immediately upon listing is expected to be $210 million.

The IPO shares represent 26.07% of its post-invitation share capital of 913 million shares.

Lian Beng is expected to retain a 73.93% stake in the group after the IPO.

The invitation will close at 12 noon on Apr 18 and the listing and trading of SLB shares are expected to start at 9.00am on Apr 20.

SLB has an established track record in the property development industry over the past 17 years and has undertaken property development projects spanning across the residential, mixed-use as well as industrial and commercial sectors, and property development projects ranging from small to large scale.

Currently, the group’s portfolio comprises five residential and mixed-use property developments, three industrial property developments, and a freehold commercial property development in Singapore.

SLB’s Singapore pipeline property development projects include three residential sites – Serangoon Ville, Rio Casa and Lorong 24 Geylang – and two industrial property development projects – Khong Guan Industrial Building and 50 Lorong 21 Geylang.

Overseas, it owns a stake in the Gaobeidian mixed-use property development project in Hebei Province, China.

These sites are all expected to be launched for sale in 2H18.

Matthew Ong, executive director and CEO of SLB, says, “This IPO presents a platform for SLB to leapfrog into its next chapter of growth. Together with our partners, we’ve demonstrated a sharp acumen for project selection and execution abilities that we hope to leverage on to expand our portfolio, both in Singapore and overseas, and we hope investors will join us on this exciting journey.”

“Our ongoing property development projects, coupled with our pipeline property development projects to be launched in 2H18, amount to a gross development value of $892 million. Development profits from these projects and the unsold completed properties held by the group are estimated to be $136 million. Concurrently, we also look forward to recognise revenue from T-Space @ Tampines when it completes in FY19,” adds Ong.