Share sale may net Macquarie $790m

SINGAPORE - An investment-trust arm of Australia's Macquarie Bank could raise between S$700 million and S$950 million ($588 million to $790 million) in an initial public offering (IPO) in Singapore in May, sources said.

The share sale for Macquarie International Infrastructure Fund is likely to be the largest this year in Singapore, possibly beating 2004's biggest float, Suntec Real Estate Investment Trust, which raised S$830.3 million in December.

Observers say Macquarie's sale could also attract strong investor interest as its projected dividend yield is higher than those on other steady yield-paying vehicles such as property trusts, which are paying 5-6 per cent on average.

A source who has seen the prospectus said the trust offered an indicative 2005 yield of 7-10 per cent.

The Macquarie firm will act as a vehicle for funds investing in the Sydney-based bank's other 19 infrastructure funds worldwide.

The 19 funds, seven of which are listed on stock exchanges in Australia, Canada and the US, have stakes in airports, transmission towers and utility networks.

Sources said underwriters DBS Bank and Macquarie Bank are talking to potential investors, although bookbuilding has yet to begin.

"It's in the pre-marketing phase. There are several research reports out there but no commitments have been made," one source said.

Potential investors have been invited to a presentation in Singapore on Tuesday.

Trading of the shares is expected to begin mid-May.

DBS Bank, UBS and Macquarie Bank declined to comment.