UI Boustead REIT closes 8.5% below IPO price amid broader market retreat
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It is the first 2026 mainboard listing, and follows a strong offering pipeline in 2025.
PHOTO: UI BOUSTEAD REIT
SINGAPORE – UI Boustead REIT, Singapore’s first mainboard and REIT listing in 2026, fell in its trading debut on March 12, along with broader losses in the Singapore market.
It opened trading at 80.5 cents, hit the day’s high of 83.5 cents, before closing at its opening price, which is 8.5 per cent below its initial public offering (IPO) price of 88 cents.
The counter was the day’s most heavily-traded stock by volume and value with 102.5 million units changing hands.
UI Boustead REIT’S IPO follows a strong offering pipeline in 2025, with about US$2 billion (S$2.55 billion) raised in proceeds, according to data from consultancy Deloitte. IPO proceeds came in at US$34 million in 2024 and US$35 million in 2023.
The offering, which closed on March 11, comprised a public offer of 33.9 million units and an international placement of 643.3 million units.
The public offer drew 4,697 valid applications for 99.9 million units, translating to a subscription rate of 2.9 times.
In total, the exercise raised gross proceeds of about $973.6 million. The offering price represented a price-to-net asset value of one, with a projected distribution yield of 7.8 per cent for financial year 2027.
Investors in the IPO included JP Morgan Asset Management, Amundi and Amova Asset Management.
Following the offering, UI Boustead REIT’S total market capitalisation was just shy of $2 billion. It aims to invest in logistics, general industrial, high-spec industrial and business-space properties in the Asia-Pacific.
The REIT holds 21 assets in Singapore and two in Japan, valued at $1.9 billion as at end-September. In the near to medium term, the portfolio will likely maintain a roughly 70:30 split between Singapore and Japan.
Overall portfolio occupancy is expected to rise from 89 per cent currently to 93 per cent by the end of March, and to 98 per cent in a year.
UIB, as the sponsor of the REIT, was formed through Unified Industrial’s acquisition of Boustead’s fund and property management business. Its assets under management in Asia total US$4 billion. THE BUSINESS TIMES
