UI Boustead REIT to raise up to $1.02 billion in Singapore IPO with shares at 88 cents each
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The REIT is offering 1.1 billion units at 88 cents apiece, according to terms of the deal.
ST PHOTO: GIN TAY
SINGAPORE/SYDNEY - UI Boustead REIT is seeking to raise up to $1.02 billion in a Singapore initial public offering (IPO) if an overallotment option is included, a term sheet showed.
The REIT is offering 1.1 billion units at 88 cents apiece, according to terms of the deal.
If arrangers of the deal exercise the overallotment option of as much as $48.1 million, the IPO would be the biggest since fibre broadband network provider Netlink NBN Trust’s US$1.7 billion (S$2.15 billion) listing in 2017.
At the offering price, UI Boustead would be valued at about $1.2 billion, the deal terms show.
Cornerstone investors have committed to buying $377.7 million worth of units in the IPO, excluding the overallotment. They include Amova Asset Management Asia, JPMorgan Asset Management (Singapore), Amundi’s Singapore and Malaysia entities and Jumbo Group of Restaurants.
The sponsor group, UIB Holdings and Boustead Projects, is expected to hold about 15 per cent of the REIT if the overallotment is fully exercised.
The deal projects a distribution yield of 7.8 per cent for the year ending March 31, 2027.
The REIT’s portfolio comprises 23 logistics and industrial assets, 21 in Singapore and two in Japan. They have a total agreed property value of $1.9 billion, a previous filing showed.
The properties have a total gross floor area of 5.9 million sq ft and a net leasable area of 5.3 million sq ft. The Singapore properties include Edward Boustead Centre, GSK Asia House and Razer’s South-east Asia headquarters.
The REIT is expected to debut on the Singapore Exchange on March 12.
It is meeting with institutional investors from Feb 27 to March 4, when it stop taking investor orders from them. Singapore retail investors will be able to subscribe to the IPO from March 5 to 10.
The IPO is a test of Singapore’s appeal as a listing venue, at a time when the the nation is trying to boost its stock market, which had seen poor liquidity and delistings in prior years. Singapore IPOs notched a six-year high in proceeds in 2025, according to data compiled by Bloomberg. BLOOMBERG, REUTERS
