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Summit Power defers planned US$260m Singapore IPO

Spokesperson says the firm will reassess the situation in conjunction with key stakeholders and strategic partners

Singapore

SUMMIT Power International has deferred its planned US$260 million Singapore Exchange IPO, which would be the first overseas IPO from a Bangladeshi company.

"In light of recent market volatility, the company has decided not to proceed on the current IPO timeline. Summit Power International remains committed to the growth of its business, in support of the development of the Bangladesh power sector," a message sent to investors said.

"The company will reassess the situation in conjunction with key stakeholders and strategic partners and provide an update in due course." A Summit spokesperson confirmed the tenor of the message to IFR.

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Market participants said there was an overall lack of demand from institutional investors and private banking clients for non-real estate investment trust IPOs in Singapore.

Summit had already compromised on the size of the deal, which it launched at US$260 million rather than the US$350 million indicated during pre-marketing. Shares were being marketed in a US$1.02-1.20 range.

The deal comprises a public offer of US$202.5 million (US$172.5m primary/US$30 million secondary) and a cornerstone tranche of US$57.5 million that the Asian Development Bank has committed to. Pioneer Generation, EMA Power Investment, International Finance Corp and IFC Emerging Asia Fund are the vendors of the secondary shares.

There is an overallotment option of 19.7 per cent of the base offer size.

Summit Power is part of the Summit Group and owns 15 power plants in Bangladesh with a total capacity of 1,201 megawatts. Citigroup, DBS and UBS are the joint global coordinators.

Separately, Qualitas Medical has not yet priced a planned S$100 million-S$133 million SGX IPO although books closed on April 10. CIMB and Credit Suisse are joint global coordinators on the IPO and bookrunners with CGS-CIMB, Daiwa and DBS.

Other listing hopefuls also ran into trouble last year. Cromwell Property Group shelved a real estate trust IPO in September after failing to attract enough demand and ended up completing a smaller deal about two months later. Debt-laden Chinese conglomerate HNA Group Co's plans for an IPO of commercial property assets got held up amid a tussle with its local partner.

While some deals in Singapore are struggling to get done, investors have been piling into equity offerings in nearby Vietnam. Warburg Pincus-backed Techcombank is planning to price its IPO at the top of a marketed range, putting it on track to raise US$922 million, people with knowledge of the matter said Monday.

Luxury developer Vinhomes JSC, which has already attracted an investment from GIC Pte, is gauging demand for a share sale of as much as US$2 billion. REUTERS, BLOOMBERG