SINGAPORE - Property giant Overseas Union Enterprise (OUE) is seeking to raise up to $614 million by spinning off two Orchard Road properties into a trust.
The firm lodged a preliminary prospectus for an initial public offering (IPO) of OUE Hospitality Trust with the Monetary Authority of Singapore yesterday.
The move boosted its share price by eight cents, or nearly 3 per cent, to $2.85 yesterday.
OUE Hospitality Trust will be a stapled group consisting of the OUE Hospitality Real Estate Investment Trust (Reit) and OUE Hospitality Business Trust.
The Reit will initially hold two assets - the Mandarin Orchard hotel and the Mandarin Gallery mall, both in Orchard Road.
The IPO will raise between $382.4 million and $391.1 million, through issuing around 434.6 million stapled securities at a price ranging from 88 to 90 cents apiece.
About 11 per cent of the IPO, or 51.1 million stapled securities, will be available to retail investors.
The rest will go on placement. Additionally, cornerstone investors will subscribe to 247.2 million stapled securities worth up to $222.5 million.