Singapore Press Holdings (SPH) will be raising S$504 million in an initial public offering of its retail-focused real-estate investment trust.
According to its prospectus, SPH REIT plans to sell its units at 90 Singapore cents each, representing the top-end of the indicative price range of 85 Singapore cents to 90 cents.
The trust is selling 308.9 million units to institutional and public investors. It has an option to bump up the sale by up to 56 million units.
SPH REIT has secured five cornerstone investors such as Great Eastern Life Assurance Company, Hong Leong Asset Management and Morgan Stanley Investment Management Company who have committed S$226 million for 251 million units.
At 90 cents a unit, SPH REIT is offering a yield of 5.79 per cent based on its projections for 2014.
The trust’s assets will include the Paragon mall in Orchard Road and the suburban Clementi Mall.
The public offer for the IPO opens on Wednesday and the listing will be on July 24.
SPH said indication of interest among institutional investors during the bookbuilding process amounted to 42 times the number of units offered under the placement tranche.
Source : Channel NewsAsia – 17 July 2013