CapitaMalls Asia: Proposed dual listing in Hong Kong.

CapitaMalls Asia's trading halt early this morning made me wonder if the rumours of dual listing in Hong Kong for this company are true. I just checked SGX's website and have confirmation.

"CapitaMalls Asia wishes to announce its intention to explore a secondary listing in Hong Kong to complement CapitaMalls Asia's growth strategy in China. China currently accounts for approximately 37%1 and 70%1 of CapitaMalls Asia’s total property portfolio by property value and Gross Floor Area respectively. Given the growing importance of CapitaMalls Asia's China business going forward, the Directors believe that the Listing will complement CapitaMalls Asia’s expansion in the country and achieve its longer-term strategic objectives." Read announcement here.

Like with all dual listing announcements, it is reasonable to expect a spike in buying interest in this counter. The fervour could dissipate after some time but I would expect some positive movement initially. Resistance levels could possibly weaken and higher highs could be formed.

See slides proposing secondary listing here.

Related post:
CapitaMalls Asia: Moving higher.

AIMS AMP Capital Industrial REIT: Lower gearing.

AIMS AMP Capital Industrial REIT will see a lower gearing of 32% very soon. This is because their Japanese property has been successfully divested for a sum of JPY1.483 billion or about S$23m. Read announcement here.

Just two days ago, I suggested that at 20c/unit, this is a value proposition. Although, technically, the malaise is quite obvious, I went ahead and bought more at 20c and 19.5c as its price declined in the last two weeks. Fundamentally, as a cash flow generator for the next two years, it is almost bullet proof.

I am very much tempted to add to my position but my investment in this REIT has already surpassed Saizen REIT to become the largest investment in my portfolio by market value now. So, unless its price weakens further to a more compelling level, the prudent thing would be to refrain from adding exposure to it.

For others who are thinking of initiating a position in this REIT, well, evaluate the facts and see for yourself. See if you agree with me.

Related post:
AIMS AMP Capital Industrial REIT: Still bottoming?