CapitaLand Investment shares climb 9% on day two

The property stock, a spin off from CapitaLand Ltd, put in a solid performance on its second day of trading.

  • CapitaLand Investment (SGX: 9CI) share price rallied strongly to a high of S$3.24 a day after its debut
  • The stock, a spin off from CapitaLand Ltd, managed a peak of S$3.01 in its first-ever trading session
  • UOB analysts believe the new entity will provide greater strategic focus for the business
  • Feeling bullish or bearish about the new CapitaLand Investment? Open an account with us to go long or short on the stock today.

CapitaLand Investment stock hits its stride

CapitaLand Investment Limited shares soared nearly 9% on Tuesday (21 September), a day after its debut on the Singapore Exchange Securities Trading Limited (SGX-ST).

The stock, which launched under the code of ‘9CI’, rallied to an intraday high of S$3.22 during its second ever trading session, after launching at S$2.95 a share on Monday.

Shares only managed to hit a high of S$3.01 early in its inaugural session, which was streamed live on Facebook and via a webcast.

The listing takes place from CapitaLand Ltd (SGX: C31), which ceased trading at S$4 a share on 09 September 2021.

The new public entity was the result of CapitaLand Ltd’s restructuring of its business into two distinct entities – CLI, the listed real estate investment management business; and CapitaLand Development (CLD), the privatised property development arm.

CLI had about S$119 billion of real estate assets under management (AUM) as at 30 June 2021, of which more than 80% are located in Asia. CLI’s real estate funds under management (FUM) also stood at about S$83.0 billion, held via six listed real estate investment trusts and business trusts, and over 20 private funds.

How do analysts feel about CLI’s prospects?

UOB analyst Adrian Loh said he likes CLI ‘for its scalability through fee-related earnings and growth potential in its funds management business’.

He also established a sum-of-the-parts valuation for the company of S$3.64. This implied a 28.9% upside from CapitaLand’s own 1x P/NAV valuation of CLI of S$2.823 which it used as part of the valuation consideration during the scheme of arrangement to delist.

Looking ahead, Loh believes the new CLI structure will help the group to sharpen its strategic focus.

‘The privatisation of CAPL’s capital-intensive development business will allow it to focus on developing longer gestation projects and incubating new businesses that require more “patient” capital,’ he said in a note on 17 September 2021.

‘In addition, the company believes that listing its investment business will increase scalability through Fee Related Earnings (FRE) and Funds Under Management (FUM) growth.’

Thinking of trading CapitaLand Investment shares?

Trade over 16,000 Singapore and international shares on leverage and Singapore share CFDs from just 0.1% commission with our award-winning platform.* Try trading CFDs risk-free with a demo account.

*Based on the Investment Trends 2018 Singapore CFD & FX Report based on a survey of over 4,500 traders and investors. Awarded the Best Online Trading Platform by Influential Brands in 2020

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.