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On top of a radical reshaping of the deal's anticipated size and structure, the government stunned bankers with its decision to do away with underwriting fees for the transaction altogether.
Instead of choosing a bookbuilding operation or an underwritten deal, the government appears to have taken a step backwards by selecting a tender offer for foreign investors, alongside fixed-price and discounted offers of stock to local residents.
Initially touted as Asia's landmark equity offering for 1993and the object of a ferocious mandate contest earlier in the year between some 20 leading international firms--the SingTel IPO is fast Turing into a damp squib.
One investment banker yesterday described it as "the incredible shrinking deal", adding that the opportunity to bring the Singapore stock market to international attention with a large-scale offering of stock appeared to have been lost.
According to details announced this week by Singapore's communications minister, Mah Bow Tan, the first phase of the SingTel flotation will raise less than half of the original $2.5bn to $3bn estimates.
Between 900m and 1.2bn shares will be placed on the market in the October offering, equivalent to 6% to 8% of the company-well below analysts' expectations of a 15% stake, or 2.2bn shares.
On issue price expectations of around S$2 a share, the transaction will raise between S$1.8bn and S$2.4bn ($1.12bn to $1.5bn), of which around half will be available for international investors.
Shares will be sold in three tranches.
* Group 'A' shares which will be sold at a fixed price to members of Singaporean pension funds only, with a 45% discount to be accumulated over six years.
* Group 'B' shares which will also be fixed-price, but without a discount and sold to Singaporeans only.
* Group 'C' shares which will be sold by tender, with a floor...