Strong demand for SPH Reit IPO, public tranche 25 times subscribed

Singapore Press Holdings' real estate investment trust (Reit) offering has seen a red-hot response from both investors large and small, despite being launched at the top end of its indicated price range.

The initial public offering (IPO) featured 308.9 million shares at 90 cents each, raising a total of $504 million. The indicative price range was 85 to 90 cents.

The public tranche of about 84 million units was about 25 times subscribed, with 71,190 valid applications for 2.1 billion units.

Of these, just 36,389 applicants were successful, and they got far fewer units than what they were hoping for.

For example, those who applied for between one and nine lots were allocated only one lot or 1,000 units. Those who applied for between 10 and 19 lots got only two lots. Those who opted for 20 to 49 lots ended with a paltry three lots.

The 224.9 million units offered to institutional and large investors via a placement was also heavily oversubscribed, with indications of interest received for around 9.4 billion shares, making the tranche 42 times subscribed.

SPH Reit will begin trading on Wednesday at 2pm.