Aspial spin-off World Class Global to debut on June 15

SINGAPORE - Property developer World Class Global, a spin-off from jeweller Aspial Corp, is seeking to raise S$21.9 million in net proceeds through an initial public offering (IPO) on the Catalist board.

The company is offering 136 million shares at 26 Singapore cents apiece, comprising 100 million new shares and 36 million vendor shares.

A bulk of the shares or 132 million will be placed out, leaving 3.98 million on offer to the public. The offer closes at noon on June 13.

Trading is expected to commence on Thursday next week (June 15).

If demand is strong enough, an extra 10.8 million shares may be offered.

World Class Global will have a S$235.5 million market value once listed, based on a post-IPO share capital of 905.7 million, assuming the over-allotment option is not exercised.

Incorporated in October 2013, the firm is yet to record any profits or revenue. Last year, it incurred a net loss of S$6.3 million, or an adjusted loss per share of 0.7 Singapore cents.

This is because the sale of development properties will only be recognised when they are handed over to the purchasers.

World Class Global has launched three projects in Australia, including residential development AVANT, which it expects to be completed in two stages with handover by the end of 2018.

At least 94 per cent of units in AVANT have been pre-sold, with total sales value estimated at A$270.6 million (S$279 million), including goods and services tax (GST) payable.

Another residential tower, the 101-storey Australia 108 was more than 97 per cent sold at the end of last year, with total sales value estimated to be A$949.7 million.

Australia 108 is to be completed in six stages with final handover in 2020. It will be the tallest building in Melbourne, the company said.

The firm also holds 28 properties in Penang, Malaysia, including two shophouses.

Aspial will retain an 80 per cent stake in World Class Global after the IPO.

Zico Capital is the sponsor and issue manager, UOB Kay Hian is the underwriter and placement agent.