Overseas Union Enterprise launches hospitality trust IPO at 88 cents apiece

Property giant Overseas Union Enterprise (OUE) has launched its hospitality trust at the bottom end of its price range on Thursday.

It is offering 434.6 million stapled securities at 88 cents each for an initial public offering (IPO). The indicated price range was 88 to 90 cents.

It registered its final prospectus for a mainboard listing of OUE Hospitality Trust with the Monetary Authority of Singapore on Thursday.

Some 51.1 million stapled securities will be available to retail investors, with around 383.5 million going on placement.

The public offer will open at 6pm today and end at noon on Tuesday, July 23.

Trading is expected to commence next Thursday, July 25, at 2pm.

OUE Hospitality Trust will be a stapled group consisting of the OUE Hospitality Real Estate Investment Trust (Reit) and OUE Hospitality Business Trust.

The Reit will initially hold two assets along Orchard Road - the Mandarin Orchard hotel and the Mandarin Gallery mall.