ARA / new IPO

ARA / new IPO: newswires say ARA is seeking ~$800m in the first dual-currency IPO in Singapore. ARA plans to offer shares of Dynasty REIT in two tranches, one denominated in RMB and the other in SGD. The co expects to get approval from SGX for the listing as soon as this week and the IPO may take place as early as in Oct. The offering will test the appetite for yuan in Singapore, where the pool of deposits in the Chinese currency is about a 10th of that in Hong Kong. Yuan deposits in HK have fallen from a high in Nov as expectations for the currency’s appreciation waned. The Singapore dollar tranche of the IPO is aimed at tapping demand among individuals who don’t have yuan to invest. The REIT is expected to be backed by 3 commercial properties in the Chinese cities of Shanghai, Nanjing and Dalian. StanChart, DBS. and Macquarie are said to be managing the offering. The only other yuan denominated REIT is HK-listed Hui Xian, also backed by Li Ka Shing. The counter has fallen 28% since its Apr ‘11 debut, closing at Rmb 3.77 yday. The co raised Rmb 10.5b in its IPO.