JSM plans Vietnam, Cambodia IPO

JSM Indochina Ltd, a company set up to invest in Vietnamese and Cambodian real estate, said on Tuesday it planned an initial public offering in London to raise between US$400 million and $600 million.

JSM, which is based in the Cayman Islands and focuses on the development and management of retail and serviced apartment assets, plans to sell up to 600 million shares at $1 each, targeting admission by the end of June, it said in a statement.

"JSM Indochina will give investors access to one of South East Asia´s fastest-growing economies and a developing property market," Chief Executive Craig Jones said in a statement.

"We believe that Vietnamese and Cambodian real estate fundamentals now offer extremely attractive opportunities for investors."

The offering comes as real estate firms in Europe face slowing property price rises and higher interest rates.

Last week, British hotel owner Vector Hospitality pulled a potentially record-breaking $4 billion IPO, and Spain´s Realia was forced to slash its offering price.

Jones, who plans to sell land in Vietnam and Cambodia worth around $35 million to JSM in exchange for shares, shrugged off concerns over potential lukewarm investor demand for property stocks.

"Investor demand for access to markets in Vietnam is quite strong ... We feel very comfortable with our $US400 to $US600 million raise. We think that is a result of strong investor demand globally," Jones said.

"There are very few international retailers there with exceptional (retail) parks... We see a number of retailers wanting to enter the market and we want to be there providing them with facilities."

The company, which will focus on HCM City and Hanoi areas, was in talks with retailers such as Parkson Retail Group for letting, Jones said.

Lehman Brothers is acting as bookrunner to the issue, and Evolution Securities is acting as nominated adviser.

The company will give Lehman Brothers an over-allotment option over ordinary shares of up to a maximum of 15%.