ARA Asset Management, which is partly owned by Li Ka-shing’s Cheung Kong Holdings Ltd, is eyeing Singapore’s first yuan-denominated initial public offering (IPO), according to three persons with knowledge of the matter.
Property trust manager ARA has appointed Standard Chartered, DBS Group Holdings and Citigroup to facilitate the IPO, said the sources, who wish to remain anonymous.
Based on a report by The Business Times, they revealed that the asset manager intends to list its Asia Dragon Fund II, but the timing and the size of the transaction are yet to be finalised.
ARA is 15.6 percent owned by Cheung Kong and its share price has grown 17 percent this year on the Singapore Exchange (SGX), giving it a market value of S$1.1 billion.
Moreover, Asia Dragon Fund II has “real estate investments in various growth economies of Asia,” stated the company’s website.
The Asia Dragon Fund II is ARA Asset Management’s second private property fund to invest in Singapore, Malaysia, Hong Kong, China and other Asian countries. The fund has capital commitments of US$400 million (S$503.32 million) and is aiming to manage US$1 billion (S$1.26 billion) in assets.
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