Centurion Accommodation Reit starts trading on SGX at 98 cents per unit, 11.4% above IPO price
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Attendees at Centurion Corp’s extraordinary general meeting on Sept 10, 2025, where the company won support for its planned listing of Centurion Accommodation Reit.
PHOTO: CENTURION
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SINGAPORE – Units of Centurion Accommodation Real Estate Investment Trust (Reit) opened at 98 cents in their trading debut on the Singapore Exchange at 2pm on Sept 25.
This was 10 cents or 11.4 per cent above the Reit’s initial public offering (IPO) price of 88 cents per unit.
The counter pared some gains and was trading at 95 cents at 2.47pm.
The Reit was spun off from mainboard-listed Centurion Corp, the owner and operator of international worker and student accommodations.
Its IPO offer of 262.2 million units had been 16.6 times subscribed.
This was based on indications of interest and valid applications, the manager added, but not applications by connected persons or those mentioned in rule 240 of the Singapore Exchange’s listing manual.
This rule states that parties such as, but not limited to, directors or substantial shareholders must disclose their aggregate interest – and the circumstances behind the acquisition of that interest – before the issuer’s securities are listed.
Including such applications, the offering was about 16.7 times subscribed, the Reit manager said.
The offer comprised an international placement tranche of 249 million units for investors outside of the United States, and 13.2 million units for the public in Singapore, subject to an over-allotment option of up to 51.1 million units.
The placement tranche was oversubscribed by around 16 times, and the Singapore public offer, by about 30.9 times.
Mr Tony Bin, chief executive of the Reit manager, said in a statement on Sept 24: “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.”
The Reit has secured 16 cornerstone investors, including DBS Bank, FIL Investment Management (Hong Kong), Amova Asset Management Asia and Lian Beng Group chairman Ong Pang Aik.
In consultation with the manager, the joint bookrunners and underwriters decided on a balloting ratio of 35:50 for the Singapore tranche. This was across all unit ranges “to ensure a reasonable spread of unitholders”.
Those who applied for the range of 10,000 to 19,000 units were granted the largest proportion of the Singapore public offer, at 23.3 per cent, with 2,195 applicants given 1,400 units each.
The smallest proportion, 1 per cent, was alloted to those who had applied for one million or more units – the highest range – with 25 applicants receiving 5,100 units each.
Based on the offering price, the Reit is projected to offer investors a distribution yield of 7.47 per cent for 2026 and 8.11 per cent for 2027. THE BUSINESS TIMES
