M&L Hospitality to raise up to $509m in Singapore IPO

M&L Hospitality Trusts, which owns hotels in Singapore, Australia and Japan, plans to raise as much as $509 million  via an initial public offering in the Southeast Asian city-state, according to a term sheet seen by Reuters.

M&L plans to sell up to 585.4 million units at an indicative price of $0.80 to $0.87 a unit, which works out to a forecast annualised distribution yield of 7.4 to 8% for 2012 based on the expected earnings.   

The M&L IPO is Singapore’s largest to date, though it is set to be soon overshadowed by other offers in the pipeline, such as Reliance Communication’s (RLCM.NS) undersea cable unit, which plans to raise US$1.4 billion ($1.7 billion) by floating its undersea cable networks via a business trust.