Monday, October 18, 2010

Global Logistics Properties

Global Logistics Properties: Could rise on debut today with offering 12x oversubscribed, shows investors keen to get behind government-backed entity with exposure to high-growth China market. Valuation also undemanding, with IPO priced at $1.96, representing 1.09x P/B, vs Asian developers with exposure to commercial property development in China, Japan trading at 1.31x-3.0x P/B. Based on low end of this range, minimum upside could be 20%-30%....

Market talk, although we cannot confirm, is that the Grey market for the IPO is within the range of $2.04-$2.15, representing a (4.5-9.6%) upside.

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