GemLife, an Australian resort operator of Degal, an Australian associated company listed on the main board of Singapore Exchange, officially launched its initial public offering (IPO) in Australia. Degala will subscribe to additional shares, bringin...
GemLife, an Australian resort operator of Degal, an Australian associated company listed on the main board of Singapore Exchange, officially launched its initial public offering (IPO) in Australia. Degala will subscribe to additional shares, bringing its equity after GemLife's listing to 16.8%.
GemLife is an operator who builds a lifestyle resort for people over 50 years old. Degala plans to subscribe to more than 600,000 additional stapled securities through an IPO at $4.16 per share to show confidence in GemLife. After listing dilution, Degala's cumulative holdings in GemLife are 16.8%.
If GemLife listing and reclassification take effect on January 1, 2024, the earnings per share of proforma will increase significantly from 0.225 yuan to 1.08 yuan as of the end of last year.
After the closing of the market on Tuesday (June 17), Thakral Corporation announced that GemLife, which owns 31.7% of the company's equity, launched its initial public offering, raising A$750 million (about S$628 million), with an implicit post-investment valuation of A$1.58 billion.
In addition, Degala will revaluate its investment in GemLife in accordance with financial reporting standards based on IPO prices. The reclassification is expected to significantly increase Degala's net asset value per share (NAV), up 67% from RMB 1.28 per share to RMB 2.15.
Degala's share price fell 2.04% to 1.44 yuan at the close of the market.
According to this treatment, Degala will no longer use the equity method to recognize its share profit in GemLife as before. Instead, future financial performance will reflect periodic fair value changes in the price of GemLife Securities, as well as any dividend income announced by the company.
GemLife's IPO is expected to be Australia's largest initial public offering in 2025, and approved securities are expected to start trading on the Australian Stock Exchange on July 3.
After GemLife is successfully listed, it will no longer be regarded as an associate, but will be recorded in Degala's financial statements in the form of "accounting for profit and loss at fair value".
