ARA US Hospitality Trust debuted on the Singapore Exchange's mainboard at 87.5 US cents yesterday, just below its initial public offering price (IPO) of 88 US cents.
The units closed at 88 US cents on a trade volume of 9.6 million.
ARA US Hospitality Trust is a Singapore-based stapled trust comprising ARA US Hospitality Property Trust and ARA US Hospitality Management Trust.
About 565.9 million stapled securities, including 132.4 million subscribed by six cornerstone investors, were issued to raise gross proceeds of US$498 million (S$679 million).
The IPO of 379.8 million stapled securities comprise a public offer of 51.1 million units that was 1.1 times subscribed, and a fully subscribed placement tranche of 328.6 million stapled securities.
Separately, 8.59 million reserved stapled securities were fully allocated, the managers said.
They noted that support from both institutional and retail investors had been encouraging, adding that the trust will focus on organic growth opportunities through active asset management and accretive investments.
ARA chief executive John Lim said the successful IPO is a "reflection of the market confidence in an ARA sponsored trust", underpinned by a "quality portfolio and an experienced management team".
It is the first pure-play US upscale select-service hospitality trust to be listed on the Singapore bourse. Its initial portfolio, valued at US$719.5 million, comprises 38 select-service hotels totalling 4,950 rooms.