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by Cheryl Tay
Ascendas Hospitality Trust has reduced the size of its initial
public offering (IPO) in Singapore to 437.325 million stapled
securities, a downward revision from its original plan to sell 506.075
million to 529.648 million units.
According to its prospectus, Ascendas Hospitality plans to sell its shares at S$0.88 per stapled security.
The trust will sell S$76.5 million worth of securities to cornerstone investors such as hotel operator Accor Asia Pacific and S$247.3 million securities to Ascendas Group, its sponsor.
Overall, the market cap for the trust is S$707 million, down from S$770 million based on its preliminary prospectus.
Moreover, Ascendas Hospitality’s IPO will no longer include the Pullman Ambassador Changwon hotel in South Korea (pictured)
— despite it being listed in its initial portfolio — due to injunctions
filed by creditors against the property’s vendor, which will affect the
timely acquisition of the hotel for inclusion in the portfolio.
Excluding the hotel, the portfolio now comprises 10 hotels with a
combined worth of S$1.06 billion, a drop from the previous S$1.2
billion.
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