Asian Pay Television Declines in Trading Debut: Singapore Mover

Asian Pay Television Trust, owner of
Taiwan’s third-largest cable television operator, slumped on its

first day of trading in Singapore to become the world’s worst

initial public offering this year on concern marginal earnings

growth will limit its ability to sustain dividends.

The stock sank 5.2 percent to close at 92 Singapore cents,

retreating from an intraday high of S$1.005. That makes the IPO

the worst among companies that raised at least $1 billion

worldwide, according to data compiled by Bloomberg. The

benchmark Straits Time Index dropped 1.1 percent.

The trust, which owns Taiwan Broadband Communications Co.,

sold 1.44 billion shares at 97 Singapore cents each, raising

S$1.39 billion ($1.1 billion) in its initial share sale. The

stock offers a projected yield of 8.5 percent for 2014 based on

the price for its IPO, according to its prospectus. That

compares with the estimated dividend yield of 4.9 percent for
StarHub Ltd. (STH), Singapore’s biggest cable TV operator, for the

next 12 months, according to data compiled by Bloomberg.

“People don’t understand where the valuation is coming

from,” said Jason Hughes, Singapore-based head of sales at CMC

Markets. “Investors could be questioning what sort of growth

can be expected going forward.”

Asian Pay Television expects revenue to increase to S$310.8

million this year and to S$323.8 million in 2014, according to

the prospectus. That compares with S$308.7 million in 2012.

Macquarie International Infrastructure Fund sold its stake

in Taiwan Broadband as part of its planned shutdown. The

Singapore-listed fund, which owned 47.5 percent of Taiwan

Broadband, said in April that it was seeking at least 40.8

Singapore cents per share from the sale.

Neuberger Berman

Asian Pay Television’s IPO is the second-biggest offering

in the city-state this year after Mapletree Greater China

Commercial Trust (MAGIC) raised $1.4 billion in February, according to

data compiled by Bloomberg.

The shares were offered at a price of as much as S$1 and

sold to investors including Neuberger Berman LLC and Quantum

Partners LP, the prospectus shows. Taiwan Broadband, established

in 1999, serves more than 750,000 cable TV households with over

150 channels, according to its website.

Newspaper publisher Singapore Press Holdings Ltd. (SPH) said this

week it plans to raise about S$540 million from an IPO of a real

estate investment trust, with a listing expected in early July.
Overseas Union Enterprise Ltd. (OUE) said in March it’s in talks with

banks to set up a REIT in the city-state. In Hong Kong, Langham

Hospitality Investments, a trust backed by Great Eagle Holdings

Ltd. (41) hotels, is scheduled to start trading tomorrow.

“The monetization of assets through REITs or trust

structures may be difficult now because of a change in interest

rate expectations towards higher rates,” Alan Richardson, a

Hong Kong-based fund manager who helps oversee about $110

billion for Samsung Asset Management Co., said. “That theme

appears to be coming to a close.”

Macquarie Group Ltd. and JPMorgan Chase Co. were joint

global coordinators for the offering, and DBS Group Holdings

Ltd. and CIMB Group Holdings Bhd. also helped manage the IPO.

To contact the reporter on this story:

Jonathan Burgos in Singapore at

jburgos4@bloomberg.net

To contact the editor responsible for this story:

Nick Gentle at

ngentle2@bloomberg.net

Asian Pay Television Declines in Trading Debut: Singapore Mover