Mapletree Industrial Trust launches Singapore’s 2nd biggest IPO for 2010

Temasek-linked Mapletree Industrial Trust has launched Singapore’s second biggest IPO this year and will raise as much as 1.2 billion Singapore dollars if the over allotment of 91.7 million shares is exercised.

This was just a day after GIC’s Global Logistic Properties launched the biggest share offering in Singapore since 1993.

Mapletree has priced its IPO at 93 cents, the top end of its indicated range.

Of the almost 600 million shares offered, it will set aside 106.15 million units for the public, while the remaining 488.77 million will be for institutional investors.

Mapletree said the cash raising will help the company repay debts and acquire six additional properties, which is part of the plan to give investors distribution per unit yields of 7.6 per cent for the next financial year and 8 per cent the year after that.

Mapletree’s CEO Tham Kuo Wei was “very positive” about the industrial outlook for Singapore, despite the economy showing signs of moderation.

“If you look at singapore’s economic growth for the next 3 years, you’re looking at between 4-5%, for the years, 2011, 2012 and 2013, we think that should drive demand for industrial space as well as business space,” he said.

According to Mapletree, it will have 250 million Singapore dollars for future acquisitions after paying down their debts and drawing down a loan facility from banks on listing day.

Although the focus is currently on Singapore’s industrial properties, Mapletree has not not ruled out venturing overseas.

“If there are opportunities overseas we would go back to our unit holders and seek their views on whether they would like us to consider some of these other markets,” said Mr Tham.

Mapletree Industrial Trust will also sell an additional 323 million units to cornerstone investors or sophisticated institutional investors.

The public offer will open tomorrow at 9am and close at 8am next Monday, with trading on the Singapore Exchange expected to start next Thursday.

Source : Channel NewsAsia – 12 Oct 2010

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