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Mapletree Commercial Trust (MCT) has experienced a lukewarm trading launch, closing flat at its initial public offering (IPO) price of 88 cents per unit.
The IPO of 712.90 million units was completed at an offering price of 88 cents per unit, above the mid-point of an 84 cent to 91 cent range.
As investors were drawn by its estimated yield of 5.7 percent for the year ending 31 March 2012, and 6.2 percent for the following year, MCT opened slightly higher at 89 cents.
The trust has traded at a range of between 87.5 cents and 90 cents, with nearly 140 million units changing hands.
MCT’s initial portfolio includes three properties worth S$2.8 billion — the Bank of America Merrill Lynch HarbourFront Singapore’s largest mall VivoCity and PSA office buildings.
Rated BAA2 by Moody’s Investors Service, MCT’s offering included a placement tranche of 548.1 million units and a public offering of 164.84 million units.
The placement tranche witnessed strong demand from institutional investors from Europe and Asia, making it approximately 9.1 times subscribed, while the public offer was around 5.45 times subscribed.
The IPO is approximately 8.38 times subscribed, based on the 682.13 million units offering (exclusive of the 30.77 million reserved units).
Amy Ng, Chief Executive at Mapletree Commercial Trust Management (MCTM), said the company was “pleased” with the robust take-up by both retail and institutional investors.
“Investors have good visibility of the organic growth immediately coming from the existing portfolio assets and can appreciate the total return story,” she added.