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With the IPO, SGX listings now have five US-focused trusts with a total market capitalisation of over S$5 billion.
Prime US Reit made a trading debut on the Singapore Exchange (SGX) last Friday, with its initial public offering (IPO) price closing at US$0.88 (S$1.20), reported The Business Times.
Units traded within a narrow range of US$0.865 (S$1.18) to US$0.88 (S$1.20) from 2 pm to 5 pm, with around 10.7 million units transacted.
The IPO was 1.2 times subscribed.
“Keeping in mind the weak demand for the IPO there might be a bit of selling in the first few days and the stabilisation tranche isn’t very big. Were the price to correct, we would be buyers at below US$0.84 (S$1.14),” said Sumeet Singh, head of IPO and placement at Aequitas Research.
Prime US Reit has a starting portfolio of 11 Class A and freehold office properties in nine US office markets.
Barbara Cambon, chief investment officer and chief executive officer of KBS US Prime Property Management, the manager of Prime US Reit, had a positive outlook for the IPO.
“The successful IPO of Prime US Reit is a testament to the market’s confidence in our stable and resilient IPO portfolio that provides a unique geographically-diversified exposure to the growing US commercial real estate sector, as well as a strong potential for acquisition growth beyond the IPO portfolio through leveraging the established KBS platform.”
With the IPO, SGX listings now have five US-focused trusts with a total market capitalisation of over S$5 billion.
SGX head of equity capital markets Mohamed Nasser Ismail said the exchange was happy to welcome Prime US Reit to its family of Reits with international assets.
“This is our third pure-play US Reit listing this year, bringing the total number of US-focused Reits to five, which demonstrates rising investor interest in US real estate.”
“The three US Reit IPOs on SGX this year have raised close to US$1.7 billion – making them the top three IPOs in Asean year-to-date by funds raised – with Prime US Reit raising the highest amount at US$612 million (S$832.9 million).”
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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