August 16, 2011 / 11:12 AM / 9 years ago

UPDATE 1-Malaysia's Parkson to list retail arm in Singapore by end-2011

* To list regional retail arm by end-2011

* Did not specify size of listing; between S$300-S$500 mln-source

* HSBC sole global coordinator and issue manager (Adds details)

By Min Hun Fong and Charmian Kok

KUALA LUMPUR/SINGAPORE, Aug 16 (Reuters) - Malaysia’s Parkson Holdings will list its regional retail arm, Parkson Retail Asia, on the main board of the Singapore stock exchange by the end of this year, the company said on Tuesday.

Parkson Holdings said Parkson Retail Asia, its 90 percent-owned subsidiary, had net assets of S$140.3 million ($116.7 million) as of June 30. The remaining 10 percent stake is owned by Indonesia’s PT Mitra Samaya.

It did not say how much it was looking to raise from the intial public offering but Reuters, quoting a source with direct knowledge of the deal, reported the Malaysian department store group plans to raise as much as S$500 million from the sale.

If it does reach that size, Parkson Retail Asia’s IPO would be the second largest by a Malaysian company this year following Bumi Armada’s $897 million listing last month.

“The proposed listing will enable Parkson Asia to gain direct access to the capital markets for capital raising in order to provide the financial flexibility for the Parkson Asia Group to pursue its growth opportunities,” the company said in its filing.

The listing still needs approval from the Singapore exchange, the Singapore monetary authority and Parkson Holdings’ shareholders.

Hongkong and Shanghai Bank has been appointed sole global coordinator and the issue manager in relation to the proposed listing.

Parkson Retail Asia is a department store operator with operations in Malaysia, Vietnam and Indonesia.

Parkson Holdings’ shares rose 2.6 percent on Tuesday, closing at 5.59 ringgit per share.

Seven out of 10 analysts tracked by Thomson I/B/E/S have either a “Strong Buy” or “Buy” call on the stock at an average target price of 6.81 ringgit per share. ($1 = 1.203 Singapore Dollars) (Editing by Raju Gopalakrishnan)

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