GIC's logistics unit launching $3 billion IPO: sources

SINGAPORE (Reuters) - Singapore sovereign fund GIC kicked off the initial public offering of its logistics unit on Thursday, aiming to raise up to $3 billion in what could be the city-state's biggest IPO.

Global Logistic Properties (GLP), which owns industrial and logistic properties in China and Japan, will be the first listing of a majority-owned firm by the Government of Singapore Investment Corp, the world's fourth-biggest sovereign fund.

GLP's listing will be among several large listings expected in Asia in the next few weeks.

"The logistics market is still quite healthy because it's correlated to external demand and exports, imports. In the Asia region, that is still pretty healthy," said Yew Kiang Wong, a CLSA research analyst in Singapore.

Investor education for the IPO will begin on Thursday, while roadshows will start on Sept 23, two sources with knowledge of the deal told Reuters.

The offering, which may exceed Singapore Telecommunications' (STEL.SI) S$4 billion ($2.9 billion) listing in 1993, is expected to be priced on Oct 8 and listed on Oct 15, one of the sources said.

A GIC spokeswoman declined to comment and the banks involved in the process either declined or were not available to comment.

The IPO proceeds will be used to support growth plans in China and Japan, as well as to pay down shareholder loans and preferred equity, the sources said.

MEGA OFFERINGS

GLP's IPO comes at a time of large listings in Asia.

In Hong Kong, American International Group (AIG.N) is planning to list its Asian life insurance business AIA in a deal that could raise as much as $15 billion.

Malaysian national oil company Petronas is listing its petrochemical arm to raise more than $2 billion, while Singapore's Mapletree will float an industrial real estate investment trust with assets of about S$1.7 billion.

GLP holds assets that GIC's real estate unit bought from ProLogis (PLD.N), one of the world's biggest warehousing firms,

in 2009. It is headed by former Prologis Chairman and CEO Jeff Schwartz, the man credited with building the U.S. company's Asian and European operations.

The firm describes itself on its website as one of Asia's biggest operator of logistics parks with 51 such properties in China alone. (www.glprop.com/zh_en/)

Some other firms linked to GIC -- which manages estimated assets of at least $200 billion -- that have listed in the past are Yanlord (YNLG.SI) and China Minzhong (CMFC.SI), but these companies had other substantial shareholders.

GIC does not disclose details of its assets.

Citigroup (C.N) and JPMorgan (JPM.N) are global coordinators for the IPO and also bookrunners with DBS (DBSM.SI), UBS (UBSN.VX) and China International Capital Corp (CICC), sources told Reuters earlier.

(Additional reporting by Lee Chyen Yee in Hong Kong and Kevin Lim in Singapore)