THE Government of Singapore Investment Corporation (GIC) is preparing to launch an initial public offering (IPO) of its logistics unit, in an effort to generate up to US$3 billion.

The proceeds of the IPO will be used to finance growth in China and Japan, as well as to pay shareholder loans and preferred equity.

The sale of Global Logistic Properties (GLP) will mark the first listing of a majority-owned firm by CIG, the world's fourth-biggest sovereign fund, in what could be Singapore's biggest IPO, reports London's International Freighting Weekly.

Sources close to the deal said GLP will be among several large listings expected in Asia over the next few weeks.

GLP is one of the largest providers of modern logistics facilities in Asia, operating in 25 markets. In China, GLP manages 51 logistics parks and two light assembly complexes in 18 major cities.

Source: Shipping China