SPH prices Reit at top end of range to raise $504m

SPH prices Reit at top end of range to raise $504m

SINGAPORE - Red-hot investor response has prompted Singapore Press Holdings (SPH) to launch the listing of its retail mall real estate investment trust (Reit) at the top end of the indicated price range.

SPH Reit will feature 308.9 million shares at 90 cents each in the initial public offer (IPO), raising a total of $504 million. The indicative price range was 85 to 90 cents.

The IPO includes 224.9 million units to be offered to institutional and large investors via a placement, with 84 million units earmarked for the public tranche.

A separate block of 251 million units will go to five prominent cornerstone investors, who have committed to paying $226 million in total.

SPH is injecting Paragon Mall into the trust for $2.5 billion and Clementi Malls for $570.5 million.

SPH Reit Management chief executive Susan Leng told a briefing that the final prospectus was registered on Wednesday with the Monetary Authority of Singapore for a mainboard listing.

"This follows a week of successful roadshow meetings where we have received strong indications of interest from institutional investors during bookbuilding," added Ms Leng.

This interest amounted to about 42 times the number of available placement units, she said.

SPH chief financial officer Tony Mallek said: "When you get 42 times coverage, it's sort of hard not to price it at the upper end."

The public offer opened at 6pm on Wednesday and will close at noon on Monday, with trading set to begin at 2pm on Wednesday, July 24.

Purchase this article for republication.



Your daily good stuff - AsiaOne stories delivered straight to your inbox
By signing up, you agree to our Privacy policy and Terms and Conditions.