CapitaLand, the largest developer in Southeast Asia, raised $1.79 billion (S$2.47 billion) from selling stakes of CapitaMalls Asia (CMA), its retail arm which has a portfolio of 86 malls in China, India, Singapore, Japan and Malaysia.
According to a prospectus on the MAS website, CapitaLand sold 1.165 billion worth of CapitaMalls shares at S$2.12 a piece. The shares were offered at the average indicative range of $1.98 and $2.39.
The money raised was intended for the expansion of CapitaMalls in China, the fastest-growing major economy, where it controls a total of 50 retail properties, 18 of which are still underway. The company also plans to purchase existing portfolios of retail properties and completed malls, as well as buy land for new developments.
“CapitaMalls should do well because it’s a consumer story and right now, with the improved economic environment, that’s an area that should be robust going forward,” said Brandon Lee, an analyst at DMG & Partners Securities Pte. “That’s especially the case in China where you’re looking at GDP growth in the double digits.”
The sale price represents around 1.55 times CapitaMalls’ September book value.