The IPO of Centurion Accommodation REIT (CAREIT) is 16.6 times subscribed.
A total of 262,160,900 units were sold, with 13.2 million units sold to retail investors.
This IPO, which raised $771.1 million, is priced at 88 cents each, which implies a projected distribution yield of 7.47% for 2026 and 8.11% for 2027.
The international placement comprises 248,960,900 units to investors outside the United States, and the remaining 13,200,000 units will be offered to the public in Singapore. This is subject to the over-allotment option of up to 51,137,000 units.
The indication of interest for the placement tranche was 16 times subscribed, and the indication of interest for the Singapore public offer was about 30.9 times subscribed. This has resulted in the total offering of 262,160,900 units being 16.6 times subscribed.
Joint chairman of Centurion Corporation David Loh and Han Seng Juan have acquired 10 million units and 6 million units respectively. Other persons, including Christine Loh, Daphne Loh, Hong Wen Yee, Loh Loy Ming, and Ivy Loh, have also acquired a few thousand units in CAREIT each, and are immediate family members of David Loh.
See also: IPOs are tumbling out, but delistings are still going on
Assuming the over-allotment option is fully exercised, Loh’s and Han’s interest in CAREIT is deemed to be 746,317,100 units each.
The REIT has also secured 16 cornerstone investors, who have subscribed for an aggregate of 614 million, or 35.7% of the total.
They are FIL Investment Management (Hong Kong), abrdn Asia, Amova Asset Management Asia, Asdew Acquisitions, B&I Capital, Barings Singapore, Cohen & Steers Asia, DBS Bank, DBS Bank on behalf of wealth management clients, DWS Investments Australia, Eastspring Investments (Singapore), Lion Global Investors, Principal Global Investors (Singapore), UBS on behalf of clients, and Value Partners Hong Kong and also Ong Pang Aik, chairman of previously listed Lian Beng Group.
See also: Soon Hock Enterprise launches $48.1 mil Mainboard offering
“The all-round support from cornerstone, institutional, and retail investors is a powerful endorsement of our vision to provide investors access to a resilient, high-quality portfolio consistently generating stable cash flows,” says Tony Bin, CEO of the manager.
“With the strong support from our committed sponsor backed by a track record investing in, developing, owning and managing quality specialised accommodation assets, we will be able to leverage on the sponsor’s deep local market experience, networks and insights in managing and growing the REIT’s portfolio,” he adds.
The units in CAREIT are expected to commence trading on Thursday, 25 Sept at 2pm.
