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Tesco raising USD600m in Asia’s No.2 IPO of year, say sources

A unit of British retailer Tesco Plc is raising about USD600 million in Asia’s second largest initial public offering (IPO) of 2012, pricing the high-yielding property fund at the top end of expectations.

The strong demand for the offering, the biggest in Thailand in almost six years, was in stark contrast to deals in other large Asian markets such as Hong Kong and Shanghai that have faced weak investors’ appetite.

The IPO was priced at THB10.4 per unit, equivalent to a yield of 6.5 percent a year, according to two sources with direct knowledge of the offering who were not authorised to speak publicly on the matter. The deal was marketed at a range of THB9.65-10.40 per unit.