CFA Society Singapore
SINGAPORE (Mar 28): The manager of Sasseur REIT says the public tranche of its initial public offering (IPO) was over 3.7 times subscribed.
At the close of the public tranche at 12 noon on Monday, valid applications for an aggregate of 51.4 million units were received.
Sasseur REIT's IPO comprised an international placement of 252.8 million units which included a placement tranche of 51.4 million units; a public tranche of 13.75 million units and commitments from 12 cornerstone investors who subscribed for an aggregate 228.4 million units.
Based on its 80 cents offer price, Sasseur REIT will have a market capitalisation of $944.2 million when it starts trading today at 9am.
Sasseur Cayman Holding is the sponsor of Sasseur REIT.
In a Tuesday announcement, the REIT manager says it raised gross proceeds of $396 million from the total 495 million units issued in its IPO.
“The robust demand from both institutional and retail investors is encouraging as it is a reflection of their confidence in Sasseur REIT’s investment proposition,” comments Xu Rongcan, founder of the sponsor, and Chairman and Non-Executive Director of the manager.
“Besides leveraging the sponsor group’s unique ‘Super Outlet’ business model which enhances resilience to competition from online retail platforms by providing a unique lifestyle shopping experience, Sasseur REIT will also benefit from inorganic growth through the potential acquisition of two Right of First Refusal Properties (ROFR) and three Pipeline Properties from the sponsor group,” he adds.
The offer price of 80 cents represents an annualised distribution yield of 7.5% for the forecast period for 2018 and 7.8% for the projection year 2019.