Frasers Hospitality to launch IPO at 88 cents per unit

Frasers Hospitality Trust (FHT) has priced its upcoming initial public offering (IPO) at S$0.88 per stapled security, giving investors who buy into the offer an indicative yield of 7 per cent per annum.

According to a draft prospectus filed on the Monetary Authority of Singapore’s (MAS) website on Monday (June 23), Frasers Hospitality will sell 182.1 million stapled securities at S$0.88 apiece in its upcoming IPO.

A further 232.9 million stapled securities will be issued to cornerstone investors, such as DBS and Fortress Capital Asset Management, at the same price.

Frasers Hospitality – which has a portfolio of 12 properties including the InterContinental Singapore and Westin Kuala Lumpur hotels – will start trading on the Singapore Exchange on July 14. Its market capitalisation will be around S$1.04 billion based on the IPO price, according to the prospectus.

Frasers Hospitality is managed by Frasers Centrepoint, the former property arm of Singapore’s Fraser and Neave. Its initial portfolio comprises six serviced residences from Frasers Centrepoint – Fraser Suites Singapore, Fraser Suites Sydney, Fraser Place Canary Wharf, Fraser Suites Queens Gate, Fraser Suites Glasgow, and Fraser Suites Edinburgh.

The other six properties are from Frasers Centrepoint’s Thai parent TCC Group. They are the InterContinental Singapore, Novotel Rockford Darling Harbour, Park International London, Best Western Cromwell London, ANA Crowne Plaza Kobe and Westin Kuala Lumpur.

Source : Channel NewsAsia – 23 Jun 2014

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