Singapore public offer of Digital Core Reit IPO is 16.1 times subscribed

No. 2401 Walsh Avenue in Silicon Valley is among the data-centre assets in Digital Core Reit's initial portfolio. PHOTO: DIGITAL CORE REIT

SINGAPORE (THE BUSINESS TIMES) - Pure-play data centre real estate investment trust (Reit) Digital Core Reit on Friday (Dec 3) said its offer of 13.4 million units to Singapore retail investors under its initial public offering (IPO) was around 16.1 times subscribed.

At the close of the offer at noon on the day before, there were 10,736 valid applications for 214.8 million units at US$0.88 a piece under the Singapore public offer.

The international placement tranche of 253.7 million units was about 19.6 times subscribed.

Based on the total 267 million units available for subscription, the offering was 19.4 times subscribed overall.

An additional 53.4 million units has also been over-allocated to applicants under the placement tranche. This will be covered through units to be borrowed by the stabilising manager, Citigroup Global Markets Singapore, from Digital CR Singapore Holding.

Citigroup will account for the over-allotted units by returning an equivalent number of units to Digital CR, either through the purchase of units on the open market by undertaking stabilising actions and/or through the exercise of the over-allotment option.

Units of Digital Core Reit will be credited to successful applicants' accounts with the Central Depository by 2pm on Monday.

Trading will commence at the same time.

Post-IPO, Digital Core Reit will have right of first refusal to a potential pipeline of more than US$15 billion of data centres - both existing and under construction.

The Reit manager has forecast a distribution yield of 4.75 per cent for 2022 and projected a distribution yield of 5 per cent for 2023.

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