UPDATE 1-Lotte Shopping postpones $1 bln Singapore REIT listing

SEOUL/HONG KONG May 2 (Reuters) – Lotte Shopping Co Ltd

said it is postponing the listing of an up to $1

billion real estate investment trust in Singapore, underscoring

lacklustre appetite for IPOs in the city state.

The operator of South Korea’s largest department store chain

said in a regulatory filing it may reconsider the option if

global financial market conditions improve, but is currently

looking at a sale and lease back deal through a local public

real estate fund as an alternative.

Singapore’s IPO market has struggled in recent years. Most

big-ticket listings in Asia opt for Hong Kong where there is

more robust demand from Chinese and international investors.

IPO deals in Singapore so far this year have had a slow

start, just $773.6 million compared to $2.46 billion for the

same period last year.

A downturn in global equity markets also helped scupper at

least one other Asian IPO last month – a Hong Kong listing for

pork giant WH Group’s, even after it cut the offer

size by two-thirds to up to $1.9 billion. WH Group’s IPO had

also suffered from rich valuations and negative publicity over

executive compensation.

The marketing for the Lotte IPO had been delayed as concerns

about economic growth in China and other emerging markets

triggered a sell-off in riskier assets, reducing investor

appetite for emerging markets.

Lotte had been pursuing the listing to improve its financial

structure and utilize funds for its business operations in South

Korea and abroad.

(Reporting by Joyce Lee and Elzio Barreto; Editing by Edwina

Gibbs)

UPDATE 1-Lotte Shopping postpones $1 bln Singapore REIT listing