Mapletree Commercial IPO priced at $0.88 a unit

Mapletree Commercial Trust is set to raise at least $898 million in an initial public offering in Singapore after pricing the IPO slightly above the mid-point of an indicative price range, a source with direct knowledge of the deal said.

The trust, managed by Singapore state investor Temasek’s property arm, priced the IPO at $0.88 a unit against an earlier indicative price range of $0.84-$0.91, the source told Reuters. The source declined to be identified because the pricing detail had not been made public.

The company plans to sell 1.02 billion units, excluding an over-allotment option, according to its prospectus.

Mapletree Commercial, whose asset includes Singapore’s largest shopping mall VivoCity, offers investors a chance to tap into the growth in Singapore’s retail market and to ride on a recovery in the city-state’s office sector.

The offering includes 302.2 million units, which will be sold to cornerstone investors AIA Group, Hillsboro Capital, Itochu Corporation and NTUC FairPrice.

Citigroup, DBS Bank, Deutsche Bank and Goldman Sachs are the joint global coordinators and, along with CIMB, are also joint bookrunners and issue managers.

Source : The Edge – 15 Apr 2011

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