Keppel-KBS US Reit starts trading debut 2% higher

SINGAPORE - Keppel-KBS US Reit rose 1.7 per cent on its trading debut at 2pm on Thursday (Nov 9).

The counter, which had an initial public offering (IPO) price of 88 US cents, opened at 89.5 US cents. It traded at 88.5 US cents at 2.23pm, with 9.8 million units having changed hands.

The Reit's offering of 262.77 million shares comprised an international placement of 228.68 million units to investors outside the US and a tranche of 34.09 million units to the Singapore public, which was about 6.7 times subscribed.

Cornerstone investors also subscribed for 246.37 million units, while the joint sponsors - who own the Reit manager - subscribed for about 119.43 million units at the offer price.

The Reit manager, Keppel-KBS US Reit Management Pte Ltd, said that the gross proceeds of US$553.1 million raised in total will be used towards the acquisition of the IPO portfolio and payment of transaction costs.