Centurion prices Hong Kong IPO shares at HK$3.18 apiece

Centurion's College & Crown student accommodation located near Yale University in the United States. The dormitory developer says it "will continue to selectively explore opportunities" to grow its accommodation business.
Centurion's College & Crown student accommodation located near Yale University in the United States. The dormitory developer says it "will continue to selectively explore opportunities" to grow its accommodation business.PHOTO: CENTURION CORP

Dormitory developer Centurion Corp has priced its secondary-listing offer in Hong Kong at HK$3.18 per share, near the mid-point of price talk of between HK$3 and HK$3.30.

The 36 million-share offering was 4.1 times subscribed, based on applications for 112.5 million public offer shares and 35.2 million placement shares, the Singapore mainboard-listed company said yesterday before the market opened.

In response to demand, Centurion has increased its public tranche from six million shares to 10.8 million while reducing its placement tranche from 30 million shares to 25.2 million.

The offering is expected to raise about HK$69.7 million (S$12.1 million) in net proceeds for the company, which owns and operates worker and student accommodation as well as a storage disc manufacturing business.

The company will use HK$62.7 million to partly fund an expected A$45.5 million (S$46.3 million) development of new student accommodation in Adelaide, it said. The rest of the development costs will be financed by internal funds and bank borrowings. The project is expected to be completed in the fourth quarter next year.

The remaining HK$7 million in net proceeds will be used as general working capital.

Mr Wong Kok Hoe, chairman and non-executive director, said: "We are pleased with the positive responses from both the institutional and retail investors during the share offer, reflecting investors' confidence in our business model, the quality of our assets and management, and development prospects.

"Looking ahead, we will continue to selectively explore opportunities to grow our accommodation business through targeted and strategic expansion in existing and new markets, joint ventures and asset-light strategies, including establishing and providing investment, asset and property management services."

Centurion t announced that it submitted an application to list in Hong Kong on June 27. It sees the listing as a way to increase its investor base and establish its brand presence in Hong Kong.

Its worker accommodation assets are managed under the Westlite brand while the student accommodation projects are run under the dwell brand.

VBG Capital is the sole sponsor of the share offer while UOB KayHian, Pacific Foundation Group and VBG Capital are joint coordinators and bookrunners on the placement.

Centurion shares will start trading in Hong Kong at 9.30am today. Centurion shares shares closed up 2.5 cents or 4.5 per cent at 58 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on December 12, 2017, with the headline 'Centurion prices Hong Kong IPO shares at HK$3.18 apiece'. Print Edition | Subscribe