Golden Glory plans Singapore IPO to fund Myanmar property drive

SINGAPORE (BLOOMBERG) - Golden Glory Group Pte, a developer of Myanmar real estate, is planning an initial public offering in Singapore this year as the opening of the frontier market spurs property demand in Southeast Asia's fastest-growing economy.

The Singapore-based company is targeting an US$80 million-to-US$100 million initial share sale, raising capital to help fund land bank acquisitions in Myanmar, chief executive officer Christopher Wu said in an interview in Yangon.

Myanmar's economic opening is creating opportunities for property developers like Golden Glory, whose fundraising efforts could also offer foreign investors a way to participate in the country's growth. Golden Glory is currently developing a mixed-development project in Yangon called Polo Club (Asia) Residence and an industrial park about 20 kilometres from the capital Naypyidaw.

Mr Wu, 53, said the property market is "picking up speed" following last year's elections. Separately, new laws and eased foreign sanctions are also attracting overseas investors to an economy the International Monetary Fund estimates will grow 8.6 percent this year, the most in Asia.

"The door has opened," Mr Wu said. "More foreign companies are setting up offices," strengthening demand for residences as well as office premises while more and more people are looking for investment opportunities to beat the rate of inflation, he said.

The Yangon project will include hundreds of high-end residential units, service apartments, a 5-star hotel, shops and offices, according to the company's website.

Golden Glory would join listed companies in Singapore with exposure to Myanmar such as property developer Yoma Strategic Holdings Ltd., controlled by businessman Serge Pun, and petroleum explorer Interra Resources Ltd.

The company's chairman and shareholder is Khin Maung Aye, who's also the chairman of Myanmar conglomerate Lat War Group of Companies. The conglomerate was established in 1999 as a garment and textile contract manufacturer, and has since expanded into real estate, paper and pulp, and power generation.

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