SINGAPORE (Mar 27): SLB Development, the long-awaited property development spin-off from Lian Beng Group, has lodged its preliminary prospectus.
No details are available yet on how much of a stake the parent company will sell and at what price.
The IPO is handled by SAC Capital.
Ong Lay Koon, sister of Lian Beng’s chairman and managing director Ong Pang Aik, is the chairman of SLB. Pang Aik’s son, Matthew, is the CEO.
According to the company’s preliminary prospectus, SLB has a list of projects and joint ventures on hand with a gross development value of $892.6 million. A third of this comes from the Rio Casa project in Hougang, where SLB holds a 20% interest.
Another local project is Serangoon Ville, where SLB holds 20% of the GDV of $254.2 million.
Th only overseas project for now is the Sino-Singapore Health City joint venture at Gaobeidian near Beijing which has a GDV of $75.8 million.
The company has been looking at other overseas markets such as UK, Australia and Vietnam.
SLB estimates that it can generate earnings of $135.6 million from these projects on hand.
While SLB focuses on property development, it is open to projects across various sectors ranging from property to industrial to commercial.
For FY2017 ended Dec 31 2017, SLB posted earnings of $15.8 million on revenue of $87.6 million.
As at Nov 30 2017, the unaudited pro forma net asset value of SLB was $92.4 million.