First day of dealings
West Pioneer Announces Successful Completion of IPO
Placing raises US$40 million valuing West Pioneer at US$120 million
West Pioneer Properties Limited ('West Pioneer' or the 'Company'), which aims to become a leading developer and operator of shopping malls in west and southern India, today announces the commencement of dealings of its Ordinary Shares on the AIM Market of the London Stock Exchange. The stock market EPIC is WPR.
The commencement of trading follows the placing of 25,000,000 shares, each of US$0.10, placed at US$1.60 (c. 81.5p) per share raising proceeds of US$40 million (c. £20.4 million), pre-expenses, for West Pioneer. 75,000,000 shares will be in issue on admission resulting in a market capitalisation of US$120 million (c. £61.1 million) at the placing price. The Nominated Adviser and Broker to the Company is Libertas Capital.
West Pioneer has been established to pursue opportunities in the rapidly growing organised retail and hotel sectors in India. The group is currently developing a shopping mall in Kalyan, 30 miles north east of Mumbai which is 30% constructed and is expected to become operational by the second half of 2007. The net proceeds of the placing will enable the Company to acquire further land in strategic 'tier two' city locations in west and southern India where West Pioneer intends to build, own and manage shopping malls, hotels or mixed mall / hotel complexes.
Jayant Sohonie, Chief Executive of West Pioneer Properties, commented: 'We are extremely pleased that the flotation has been completed successfully and look forward to joining the London stock market. With the growing retail and tourism markets in India, we believe West Pioneer's focused and disciplined approach together with the management team's deep knowledge of the real estate and consumer markets will enable us to reward our shareholders for their support.'
For further information, please contact:
| West Pioneer | |
| Amit Jatia, Chairman | Tel: +44 (0) 20 7398 7700 |
| Jayant Sohonie, Chief Executive Officer |
| Libertas Capital | |
| Aamir Quraishi / Iek van Cruyningen | Tel: +44(0) 20 7569 9650 |
Media Enquiries
| Abchurch Communications | |
| Heather Salmond / Leena Patel | Tel: +44 (0) 20 7398 7700 |
| leena.patel@abchurch-group.com | www.abchurch-group.com |
Photography
Photographs are available from Abchurch. To arrange to receive soft copies, please contact Leena Patel on 020 7398 7711 or leena.patel@abchurch-group.com
About West Pioneer Properties
West Pioneer aims to become a leading developer and operator of high-quality shopping malls in India while generating attractive returns for shareholders from growth in income and underlying asset value. The Company will focus on building, owning and operating 'consumer-centric' shopping centres in 'Tier Two cities' in west and southern India. These will be in locations where the management believes there is potential for a rapid growth in middle class income groups and where land prices have not yet appreciated to the levels seen in the largest Indian cities. Where sites permit, the Company will aim to develop hotels as part of a mixed hotel/shopping mall development or on a stand alone basis.
The group is currently developing a shopping mall in Kalyan, 30 miles north east of Mumbai. The project is already 30% constructed and is expected to become operational by the second half of 2007. The Group has agreed heads of terms with prospective retailers for 52 per cent. of the shopping mall retail space - prospective retailers include Big Bazaar, Fame Multiplex and McDonald's.
The board is chaired by Amit Jatia, the founder of the Company, and its CEO is Jayant Sohonie. Amit is the managing director of Hardcastle Restaurants, the 50:50 joint venture company between the Jatia family and McDonald's for west and southern India. Jayant has held a variety of positions at Hindustan Lever (a subsidiary of Unilever plc). Their combined experience provides the Company with deep understanding of the real estate and consumer industries in India, and a track record of execution capability.
West Pioneer has a 'consumer centric' approach to developing and managing shopping malls involving a rigorous and disciplined site selection and design process that aims to maximise operational efficiency and ensure only appropriate sites are developed. The retail mix will be carefully planned by management to satisfy the targeted middle class population. Attracting well established retail brands to the shopping malls will increase the attractiveness of the development to other potential retailers and to customers. To encourage long term relationships with retailers, West Pioneer will aim to competitively price its retail space by thoroughly researching viable sites in Tier Two cities and acquiring them early.
The contents of this announcement, which has been prepared and issued by and is the sole responsibility of West Pioneer Properties Limited, have been approved solely for the purposes of section 21 of the Financial Services and Markets Act 2000 by Libertas Capital Corporate Finance Limited.
Libertas Capital Corporate Finance Limited and Libertas Capital Securities Limited, each of which is regulated in the United Kingdom by the Financial Services Authority, are acting for West Pioneer Properties Limited and for no-one else in connection with the matters described in this announcement and will not be responsible to anyone other than West Pioneer Properties Limited for providing the protections afforded to customers of Libertas Capital Corporate Finance Limited and/or Libertas Capital Securities Limited or for advising them on the contents of this announcement or any matter referred to herein.
This announcement does not, and no part of it shall, constitute or form part of any offer for sale or subscription of securities, or any solicitation of any such offer, not shall it, or any part of it, form the basis of or be relied upon in connection with any contract or commitment whatsoever. Any eventual acquisition of, or application for, shares in West Pioneer Properties Limited should be made solely on the basis of information contained in the admission document relating to West Pioneer Properties Limited to be issued in due course in connection with the proposed admission to trading on AIM, a market operated by London Stock Exchange plc, of ordinary shares issued by West Pioneer Properties Limited.
This announcement is not for release, publication or distribution, in whole or in part, in or into the United States of America, Canada, Japan or Australia or any jurisdiction where such announcement would be unlawful.
This announcement is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration under the US Securities Act of 1933 (the 'US Securities Act') or an exemption therefrom. West Pioneer Properties Limited has not and does not intend to register any shares under the US Securities Act. The shares will not be offered or sold in the United States.