Parkson and Xiwang undeterred by government reit tying up retail funds
Two more listing hopefuls, Parkson Retail Group and Xiwang Sugar Holdings, kicked off their official roadshows yesterday, undeterred by Link Reit's ongoing $19.8 billion share offering.
While the government-backed real estate investment trust arguably is not as hot as last time around, it is capturing a lot of investor attention and is also freezing up sizeable amounts of retail cash.
According to market sources, institutional investors have already ordered more than four times the amount of available Link Reit units, even as they note a yield that is less attractive than a year ago, because of higher returns available on other instruments, such as bonds. The book will close tomorrow.
Hong Kong tycoon Lee Shau-kee yesterday said he had applied for between $800 million and $1 billion worth of shares in the government-backed real estate trust through his private investment vehicle.
For investors looking for more rapid growth, mainland-based Parkson and Asia's largest glucose powder maker Shandong Xiwang Sugar could be alternatives.
Xiwang, which produces crystallised glucose from corn for the food and drink, pharmaceutical, animal feed and biochemical industries, is expecting rapid growth in demand for its products parallel to the strong economic expansion in China.
