Silverlake Axis: (S$1.31) 27%-owned Global Infotech files for listing in Shenzhen
Silverlake Axis' 27%-owned Global Infotech (GIT) has filed its IPO prospectus for a listing on ChiNext of the Shenzhen Stock Exchange, for 33.3m new shares of Rmb11.26 apiece.
The IPO price translates to an adjusted P/E ratio of 22.9x FY14 earnings compared with average P/E multiples of 143.5x of peers disclosed by the company.
Post-issue, Silverlake Axis' stake will be diluted to 20.2% and its 27m shares will be worth Rmb304m ($65.4m), just 2% of Silverlake's current market cap of $2.9b.
While the spin-off may not be a material share price mover, Maybank-KE believes that a listing would help raise GIT's profile and provide fresh funds for growth in the medium term.
The house currently has a HOLD rating and TP of $1.38.
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