SGX:AWI.SI:Thakral Corporation

Thakral Corporation’s associate, GemLife Communities, has officially launched its initial public offering (IPO) to raise up to A$750 million (S$628.2 million), the mainboard-listed company announced in a bourse filing on Tuesday (Jun 17).

The IPO values the Australian over-50s lifestyle resorts operator at a post-money valuation of A$1.58 billion, making it the largest listing on the Australian Securities Exchange (ASX) this year. The deal is fully underwritten by JPMorgan and Morgan Stanley in Australia.

Thakral, which currently holds a 31.7% effective interest in GemLife, plans to subscribe to an additional 600,962 stapled securities at A$4.16 each. Post-IPO, Thakral’s effective stake will be diluted to approximately 16.8%, holding a total of 64,000,962 GemLife stapled securities.

Upon completion of the IPO on Jul 3, GemLife will no longer be classified as an associate in Thakral’s books. Instead, the investment will be reclassified at fair value through profit or loss. As a result, Thakral will cease equity accounting for GemLife’s earnings and instead reflect future fair value gains or losses and dividends received.

The reclassification will significantly boost Thakral’s financials. On a pro forma basis, net asset value per share is expected to surge 67% from S$1.28 to S$2.15. Earnings per share (EPS) would have jumped 381% to S$1.08 in FY2024, had the IPO and revaluation occurred from the start of the year.

Thakral’s balance sheet is also set to benefit. Total assets are projected to rise 42% to S$512.1 million. With the repayment of GemLife receivables, net borrowings are expected to fall by 56% to S$22.3 million, bringing down the gearing ratio to 0.23 from 0.39. Cash and bank balances on a pro forma basis are expected to reach S$38.4 million.

CEO Inderbethal Singh Thakral said the listing would unlock “significant shareholder value” and pave the way for future growth.

GemLife, Australia’s largest privately owned land lease community operator, manages nearly 10,000 homes across more than 30 communities.

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