Trust expected to raise as much as $1.19b in gross proceeds from IPO
Mapletree Industrial Trust’s (MIT) initial public offering (IPO) saw a strong take-up rate with an oversubscription of about 37.9 times, led by demand from institutional players.
The take-up means that more than $20.1 billion in total of application money was made available for the IPO, MIT said yesterday.
MIT is expected to raise as much as $1.19 billion in gross proceeds from its IPO, if an overallotment option of 91.75 million units is exercised.
Mapletree is selling 1.28 billion MIT units at 93 cents apiece. This includes some 595 million units, comprising 489 million units that were placed out and 106 million units that were sold to the public.
Six cornerstone investors, namely AIA, Prudential Asset Management (Singapore), Henderson Global Investors, Columbia Wanger Asset Management, US investment firm DE Shaw and Dutch pension fund APG, will subscribe for a separate 323 million units.
Mapletree’s two subsidiaries, Mapletree Dextra Pte Ltd and Sienna Pte Ltd, will also subscribe for 359 million units, giving Mapletree a post-IPO stake of about 31 per cent if the greenshoe option is fully exercised.
The placement tranche of 489 million units was oversubscribed by 39.6 times, with a total value exceeding $18 billion.
The public tranche included 25.5 million units reserved for subscription by the directors, management, employees and business associates of Mapletree.
The remaining 80.6 million units, representing about 6.3 per cent of the total unit sale (excluding the overallotment), was about 27.7 times oversubscribed, translating to total value of about $2.1 billion.
MIT’s offer price represents an annualised distribution yield of 7.6 per cent for fiscal 2010, which is estimated to rise to 8 per cent for fiscal 2011.
It expects to pay out all of its distribution income to unitholders from listing until March 31, 2012, MIT said at a briefing last week.
MIT, which is the third real estate investment trust to be launched by Temasek Holdings’ Mapletree Investments, has a portfolio of 70 industrial properties in Singapore.
Global Logistic Properties (GLP) also saw firm interest in its IPO, which was more than 12 times oversubscribed.
Out of the 88,393 public offer applications for GLP, 85,136 applications, or 96 per cent, were successful ones.
The balloting results of the GLP applications also threw up some startling numbers. It showed that there were 22 successful applicants from the public who had initially applied for at least one million shares, coughing up at least $1.96 million upfront.
They were eventually allotted 10,000 shares each.
Shares of GLP continued their uptrend yesterday, gaining 5.53 per cent or 12 cents to end at $2.29. It was the most active stock on the Singapore Exchange, with 262 million shares changing hands.
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