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Frasers Logistics & Industrial Trust intends to raise up to S$900 million in its initial public offering (IPO). If it proceeds as planned, this would be the largest listing in Singapore since 2013, reported Bloomberg.
Sponsored by Frasers Centrepoint , the trust will hold a total of 51 properties that were acquired after its backer purchased Australand Property Group in 2014.
According to a prospectus submitted to the local stock market on Friday (3 June), the trust will offer shares at 85 to 89 Singapore cents apiece. Each unit is expected to generate a dividend yield of as much as 7 percent and 7.5 percent for the 2016 and 2017 financial year, respectively.
The IPO is expected to propel the transaction volume in the Singapore Exchange (SGX), after listings plunged to US$366 million (S$503.62 million) in 2015 from US$2.6 billion (S$3.58 billion) during the previous year, based on statistics compiled by Bloomberg.
If Frasers achieves the maximum target, it would be the most expensive listing in the Republic since 2013, when Asian Pay Television Trust amassed around US$1.4 billion (S$1.93 billion).
Among the IPO’s 15 cornerstone investors are DBS Bank Ltd, Lion Global Investors Ltd, JF Asset Management Ltd, Affin Hwang Asset Management Bhd and Morgan Stanley Investment Management. Collectively, they have agreed to purchase about 50 percent of the overall shares.
Citigroup Inc and DBS are the global coordinators.
Meanwhile, Singapore-listed Frasers Centrepoint owned about S$23.1 billion worth of assets in 2015. Aside from developing properties in Singapore, Australia and China, it has also created real estate investment trusts in the retail, commercial and hotel sectors.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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