TEE Land

TEE Land: Final prospectus has been lodged; The offer of 115m shares at $0.54/share comprises of 109m placement shares, and 6m public offer shares. SAC Capital is the issue manager, underwriter and lead placement agent for the IPO. IPO proceeds of $57.8m will be used for new property development projects/ investments ($26m), repayment of loans to TEE International ($15m), repayment of bank loan ($6m) and the balance for general working capital. Home-grown property developer is looking to have a balanced portfolio of projects aross the region and in different segments. Capital value of TEE Land's current proerty portfolio stands at $394.6m, with the completion of 6 developments, the launch of 10 developments which are currently in construction, and an interest in 8 developments that have not been launched. Assuming no exercise of the over-allotment option of 23m shares, the market cap of TEE Land post-IPO will be $241.3m, with parent company TEE International retaining a 70.7% stake. Based on $19.3m earnings and NAV of $75.6m for FY2012, TEE Land will be trading at 12.5x trailing P/E and 3.2x P/B post-IPO. Indicative timetable: 30 May, 9.00am: Opening of public offer 4 Jun, 12.00pm: Closing of public offer 6 Jun, 9.00am: Commencement of trading