Channel NewsAsia

Frasers Hospitality Trust IPO 19 times subscribed

Frasers Hospitality Trust reports that the 45.5 million stapled securities offered to retail investors attracted around S$552.7 million worth of applications. This works out to a subscription rate of around 13.8 times.

SINGAPORE: Frasers Hospitality Trust (FHT) received strong investor interest for its initial public offering (IPO), with demand exceeding the number of stapled securities offered by around 19 times, its manager said on Friday (July 11).

FHT said in a statement the 45.5 million stapled securities offered to retail investors at S$0.88 each attracted around S$552.7 million worth of applications at the close on Thursday. This works out to a subscription rate of around 13.8 times.

The indications of interest for the placement tranche amounted to S$2.5 billion, representing approximately 20.7 times the 139.6 million stapled securities available to institutional investors.

FHT, which is managed by a unit of Singapore property giant Frasers Centrepoint, owns 12 properties in Asia, Australia and the UK valued around S$1.67 billion.

The assets include the InterContinental Singapore, the Westin Kuala Lumpur, ANA Crowne Plaza Kobe, Novotel Rockford Darling Harbour, Fraser Place Canary Wharf, Fraser Suites Glasgow and Fraser Suites Edinburgh.

Based on the offer price of S$0.88 per stapled security, successful applicants will enjoy a distribution yield of 6.9 per cent in the first financial year and 7.0 per cent the following year. 

Tweet photos, videos and updates on this story to  @channelnewsasia