Home » , » First Sponsor Group Limited - IPO Termsheet

First Sponsor Group Limited - IPO Termsheet

Shared By StockFanatic on Tuesday, June 17, 2014 | 17.6.14

Company Highlights
1. Supported by established Controlling Shareholders
FSGL ultimate Controlling Shareholders, the Hong Leong Group of companies ("Hong Leong Group Singapore"), through its shareholding interests in M&C UK, and Tai Tak are established names well recognised and respected in Asia, including in the PRC.

The appointments of these Controlling Shareholders' representatives on FSGL's Board, as Chairman and Vice-Chairman, demonstrate these Controlling Shareholders' commitment to FSGL, and also allows FSGL to leverage on the business expertise and networks of these prominent business leaders.

2. Strong management team that combines Singapore managerial expertise with local PRC execution capabilities
The management team is made up of experienced professional from both Singapore and China with proven track records, and knowledge of the local market in China.

Source : Company
3. Focus on tier-two cities and the mass market segment in the PRC positions FSGL to leverage on the macro economic and population trends in the PRC
The urbanisation drive in the PRC, which will be characterised by growth in rural towns and small cities, is expected to increase significantly the population of tier-two cities, particularly in Central and Western China. This in turn will support demand in the residential property market, especially within the mass market residential segment.

FSGL residential development projects are primarily mass market residential properties that are targeted at middle-class and upper-middle class households and buyers in tier-two cities - placing FSGL in a good position to leverage in the macroeconomic and population trends in the PRC.

Source: DTZ Valuation and Advisory Services, DTZ Research
4. Discplined business strategy in property financing business
FSGL employs a disciplined business strategy in its property financing business, allowing it to obtain an appropriate return for its loan exposure, or in the event of a default by the borrower, the opportunity to acquire properties that have been mortgaged as collateral for loans extended by FSGL, at an appropriate discount to the fair value of these properties.

5. Prudent financial management which mitigates economic downturns and increasing funding costs and provides flexibility in business expansion
FSGL possesses a strong balance sheet, currently being in a net cash position as opposed to a net debt position faced by almost all other PRC property developers. In the event if any downturn in the PRC economy and property market, the company's strong balance sheet helps to nitigate business and financial risks that may arise.

FSGL healthy financial position also provides it with the flexibility to obtain further bank borrowings for future property developments and ti take advantage of any appropriate property holding and property financing business opportunities that may arise in the future.

Issuer :
First Sponsor Group Limited ("FSGL")
Listing :
IPO on Mainboard of SGX-ST
Sole Financial Advisor, Issue Manager, Placement Agent and Underwriter :
DBS Bank
Core-Manager and Sub-underwriter :
UOB Bank
Preliminary Prospectus:
Final Prospectus:
Indicative Price Range :
S$1.50 - S$1.60 per share
Valuation based on the Indicative Price Range :
Discount of Implied Property Fair Value to Property RNAV (post-IPO) of 23.7% to 28.8%
 Offering size: 
63,800,000 shares (representing appx. 10.50% of enlarged FSGL share capital) comprising :

- 9,750,000 shares for cornerstone subscriptions;

- 49,050,000 Offering Shares for placement;

- 5,000,000 Offering Shares for public offer in Singapore
Gross Proceeds:
 S$ 95.7m - S$102.1m
Market Capitalisation (Based on offering price range) :
- Approx. S$914.7m to S$975.7m
 Lock-Up : 
6 months from listing date for approximately 80% of the post-offering share capital, including shares held by controlling shareholders, Chairman, Group CEO, management staff and employees
 Use of Proceeds : 
Approx. 95% of the proceeds will be used to fund FSGL future property development projects including acquisition of land use rights, as well as future development of properties held for income, if any;

Approx. 5% of the proceeds will be used for general corporate and working capital purposes
Dividend Policy :
- For FY2014, FSGL intend to recommend and pay dividends of S$10.0 million, adjusted on a pro rata basis, for the period from listing to 31 December 2014 to shareholders. Thereafter FSGL intend to maintain a stable payout of S$10.0 million per financial year, with a steady growth when appropriate, subject to the successful implementation of FSGL strategy and prevailing financial, competitive, regulations, that may be specific to FSGL or specific to their industry.
 Indicative Timeline :
11 June 2014, Wednesday onwards
 Books Open: 
11 June 2014, Wednesday onwards
 Books Close: 
8 July 2014, Tuesday (5PM in each region) or subject to notification by DBS
 Pricing & Allocation: 
9 July 2014, Wednesday
 MAS Registration: 
10 July 2014, Thursday
 Public Offer: 
11 July 2014, Friday to 17 July 2014, Thursday
 Expected Listing: 
22 July 2014, Tuesday
 Indication of Demand :
Demand to be reflected in SGD or in number of shares ONLY
 Selling Restrictions :
Singapore Offering; Hong Kong and UK selling restriction provided
 Factsheet Download :

Posted on Tuesday, June 17, 2014 | 17.6.14
With No comments

Join Me On: Facebook | Twitter | Google Plus ::: Thank you for visiting ! :::
Share this article :

Post a Comment

Modified by : Stockfanatic
Copyright © 2008 - 2018. Singapore Stock Market News - All Rights Reserved
Template Created by Creating Website Published by Mas Template
Proudly powered by Blogger
Related Posts with Thumbnails