Singapore, January 25, 2008 – LAWFUEL – Law Newswire – Baker & McKenzie acted as US and Hong Kong counsel for ARA Asset Management Limited (“ARA”) on its initial public offering of 279 million ordinary shares, including a placement to cornerstone investors. The shares were listed on the Singapore Exchange Securities Trading Limited on November 2, 2007.
The IPO, which closed on October 31, 2007, consisted of an international placement to institutional investors and a domestic public offering. The deal was valued at approximately US$220 million. The net proceeds from the offering will be used by ARA as seed capital for an Asian investment fund and other property funds, capital for ARA’s sponsorship in new real estate investment trusts (“REITs”) by being a strategic investor, and for working capital and general corporate purposes.
ARA is an Asian real estate fund management company that was founded in 2002 by Group Chief Executive Officer Mr. John Lim and the Cheung Kong Group.
The Baker & McKenzie team on this deal was led by Singapore-based U.S. Securities Partner Ashok Lalwani and Hong Kong-based Corporate Partner Milton Cheng.
Commenting on the deal, Ashok Lalwani said: “We are pleased to have acted for ARA in this transaction. This deal required cross-border interfacing, which, with our international platform and strong Asia-Pacific presence, we were able to leverage to assist in ARA’s growth plans and attraction of quality international investors. It is also one of the first IPOs of an asset management group in this part of the world.”
“This deal marks a significant milestone in the ARA Asset Management Group’s development, and we are delighted to have been a part of its growth story through our successful past collaborations. We eagerly look forward to maintaining our strong relationship with the Cheung Kong Group and ARA, and to work with them on more exciting projects in the future”, added Milton Cheng, who is also the Regional Co-Head of the Firm’s Real Estate Investment Trusts practice in the Asia-Pacific.
Credit Suisse (Singapore) Limited, DBS Bank Ltd. and CIMB-GK Securities Pte. Limited were underwriters for the offering.