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by Cheryl Tay
Ascendas Hospitality Trust has raised a total of S$770 million at its initial public offering (IPO) in Singapore, making it the largest listing in the city-state so far this year.
Each of the trust’s shares was sold at 88 Singapore cents, placing it at the low end of the range, said the sources who chose to remain anonymous for the purpose of confidentiality.
According to data compiled by Bloomberg, Singapore’s five biggest IPOs over the past two years were all by real estate investment trusts (Reits) or businesses, as investors prefer high-yielding assets in the face of volatile stock markets.
Ascendas Hospitality Trust, which includes 11 hotels from Tokyo to Sydney worth a total of S$1.2 billion, is expected to have an annualised dividend yield of 6.8 percent in 2013.
The managers of the IPO are Credit Suisse Group AG, DBS Group Holdings Ltd, HSBC Holdings Plc, Standard Chartered Plc and Nomura Holdings Inc.
Ascendas Hospitality Trust’s parent-company manages Singapore’s largest industrial Reit and operates in over 30 cities with assets valued at over S$12.9 billion.
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