Leave a Comment:
6 comments
As it turns out, the IPO turns out to be a flop (for now). Trading below IPO price.
ReplyLet’s analyse this IPO.
1. Public tranche is 12.5 oversubscribed, which is pretty high.
2. Dividend yield is very high @ 8.22%. Better than DBS 4.7% or MapleTree Industrial.
3. There was ballotting. Not every successful applicant was alloted shares. So there must be disappointed investors around.
4. The first and biggest Shariah compliant REIT in sg, managing sg properties. A less risky invetment, meant for conservative investors.
With all factors in its favour I am surprised that it is initially trading below water. Perhaps we are suffering from IPO burnout. Perhaps interest rates are rising soon, though I don’t think so.
With low prices, unsatisfied investors will now go in and get an even better yield, pushing up the market price.
ReplyHi Lion,
If this is not a snap IPO, I don’t know what is. Why the rush?
Out of the 75.5 mil units available to the public, only 25.5 mil is for the man in the street, with 50 mil units reserved for directors, employees etc. Looks like this IPO is not targetted at the average Joe. With high dividend rate and quarterly payouts, I think this offer will be heavily oversubscribed. What do you think?
What will happen if this REIT gets delisted? How will unitholders be able to cash out? Tks.
Reply