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Frasers Logistics and Industrial Trust has completed its initial public offering (IPO) of 521.7 million units, with strong support from both retail and institutional investors.
Priced at S$0.89 per unit, the offering comprised an international placement of 441.7 million units to investors, of which 5.6 million units were reserved, as well as an offering of 80,000 units to the public.
Interest from institutional investors amounted to over S$2.5 billion, or over six times the units offered to them.
Including the 492.86 million units placed out to 15 cornerstone investors, a total of 1.01 billion units were issued to raise gross proceeds of around S$903 million — making it the biggest real estate investment trust (REIT) IPO on the Singapore Exchange year-to-date.
“The strong demand from both institutional and retail investors to our IPO is indeed heartening and a strong reflection of the confidence in FLT’s unique investment proposition as Singapore’s first initial pure-play Australian industrial REIT,” said Robert Wallace, Chief Executive Officer of Frasers Logistics & Industrial Asset Management, the REIT manager.
Based on S$0.89 per unit offering price, FLT offers investors distribution yields of “6.83 percent and 7.30 percent for FP2016 and PY2017 respectively.”
Trading of the units will start tomorrow (21 June) at 9am.
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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