Singapore's CapitaLand will raise US$1.8 billion (S$2.5 billion) through the IPO of its shopping-malls unit, playing it safe on the pricing after some Asian IPOs faltered recently because of valuation concerns.

CapitaMalls Asia's IPO has been priced at $2.12 a share, according to an issue prospectus, below the midpoint of an indicative range of $1.98-$2.39 a share.

The conservative pricing is aimed at ensuring that the IPO trades well after it debuts on the stock market on Nov 25, said a source with direct knowledge of the deal.

'The book was very well-covered from long-only investors,' said the source, adding that United States and European investors participated heavily in the IPO. 'This IPO could have been priced higher, but the aim was not to squeeze investors.'

The CapitaMalls IPO will be the biggest here since SingTel raised $4 billion in 1993.

Asia has been a hotspot for IPOs this year, but some newlylisted companies have had poor debuts, raising concerns about valuations.

CapitaLand is selling 1.165 billion shares, or 30 per cent, in its wholly-owned CapitalMalls Asia unit.

JPMorgan is the sole financial adviser, and is issue manager with DBS. The two banks are also bookrunners with Deutsche Bank and Credit Suisse, according to the prospectus.

CapitaMalls manages and has interests in 86 retail properties worth US$14.4 billion in Singapore, China, Malaysia, Japan and India.

CapitaLand may pay a dividend from the proceeds of the IPO and also use it to invest in residential and other projects, such as those in hospitality, some analysts said.

Macquarie Securities said in a research note on Monday that CapitaLand could take advantage of a faster-than-expected recovery in Asia's property market.

'This exercise (IPO) helps the group to recycle capital to fund future growth in China and Vietnam, its serviced-apartment business and opportunities for residential-land acquisitions where possible,' analysts Soong Tuck Yin and Elaine Cheong said in the note.