Indonesia's Bumitama revives $160 million Singapore IPO
Posted by Labels: Agriculture Business, Indonesia, palm oilIndonesian palm oil firm Bumitama Gunajaya Agro is reviving its $160 million initial public offering in Singapore after shelving it in June, a signal that investors' appetite for IPOs could be returning.
Bumitama plans to raise about S$200 million ($160.6 million)through a listing in Singapore in the second quarter of the year, three sources with direct knowledge of the matter told Reuters.
The revival of Bumitama's IPO could mark the start of several more Asian listings to come, as equity markets around the region enjoyed a strong start to the year with the MSCI Asia ex-Japan gaining 13 percent so far.
Market volatility and waning risk appetite forced several large IPOs in Asia, including English Premier League club Manchester United's high profile listing, to be pulled last year.
However, some of these may be making a come back in the first half of the year, helped by buoyant stock markets.
"The markets are better than where we were in the fourth quarter.
US data is pretty strong and the ECB (European Central Bank) is pumping a lot of liquidity into the market," said one of the sources.
Rupert Mitchell, head of equity syndicate at Citigroup, said it will need a few more weeks of stable markets and higher valuations to tempt some larger issuers back to the market.
"Some IPO issuers are roadshowing to gauge investor sentiment, but it's still a tough market for IPOs and it's too early to call it an IPO comeback," he said.
HSBC and DBS remain the joint bookrunners for the IPO, the sources said.
They declined to be identified as they were not authorised to speak to the media.
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