Singapore MRT a gift to revive interest in privatizations

Singapore MRT''s IPO has been priced cheap to whet investors'' appetites ahead of much bigger government share sales later this year.

The Singaporean government has agreed to sell a third of its holding in Singapore MRT pretty cheap, pricing the 492 million shares on offer at S$0.61 each û the upper end of a fairly low range.

The market capitalization of SMRT is a bit smaller than originally was expected û they are now talking about a S$900 million $236.8 million company. Initial projections had valued SMRT at S$1 billion, perhaps a little more, says John Casey, transport analyst at SG Securities in Singapore.

Indeed, recent valuations by DBS Securities and Credit Lyonnais Securities Asia CLSA, two of the four investment banks arranging the SMRT sale, valued the company at S$1.1 billion to...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222