UPDATE 1-CapitaMalls Asia IPO to raise $1.8 bln-sources

By Saeed Azhar SINGAPORE, Nov 17 (Reuters) - Singapore's CapitaLand is set to raise $1.8 billion from the initial public offering of its shopping malls unit in the biggest listing in the city-state since 1993, two sources told Reuters on Tuesday. The deal follows Maxis's $3.3 billion IPO in Malaysia, Southeast Asia's biggest IPO ever, as Asian companies rush in to take advantage of recovering stock markets. CapitaMalls Asia priced its IPO at S$2.12 a share, below the midpoint of an indicative range of S$1.98-S$2.39 a share, which one of the sources said was aimed at ensuring the IPO trades well after it debuts on the stock market on Nov 25. Asia has been a hotspot for IPOs this year led by multi-billion dollar deals in China, but some newly listed companies have had poor debuts, raising concerns about valuations. "The book was very well covered from long-only investors," said a source, adding U.S. and European investors participated heavily in the IPO. "This IPO could have been priced higher, but the aim was not to squeeze investors." CapitaLand is selling 1.165 billion shares, or 30 percent, in its wholly owned CapitalMalls Asia unit, which will raise $2.47 billion ($1.8 billion).

This will be Singapore's second-biggest IPO since Singapore Telecommunications raised S$4 billion in 1993. Analysts have said the listing of the unit will boost CapitaLand's ability to buy and build more property assets in Asia. CapitaLand wants China to account for 35-45 percent of its assets from 28 percent now, and is seeking to increase Vietnam's share to 5-10 percent of assets. JPMorgan is the sole financial adviser, and issue manager with DBS. The two banks are also bookrunners with Deutsche Bank and Credit Suisse, according to the prospectus. CapitaMalls manages and has interests in 86 retail properties worth $14.4 billion in Singapore, China, Malaysia, Japan and India. CapitaLand suspended its shares for trading early on Tuesday, saying it would make an announcement on CapitaMalls Asia's IPO. CapitaLand declined to comment on the IPO pricing. ($1=1.382 Singapore Dollar) (Reporting by Saeed Azhar; Editing by Jeremy Laurence and Muralikumar Anantharaman) (([e-mail]; [phone]; Reuters Messaging: [e-mail]) Keywords: CAPITAMALLS IPO/ (If you have a query or comment on this story, send an email to [e-mail]) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.

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