REUTERS - OUE Hospitality Trust, backed by Indonesian tycoon Stephen Riady's hotel and property group, opened 0.6 per cent above its initial public offer price on Thursday after pricing its issue at the bottom of an indicative range.

OUE Hospitality's stapled securities opened at $0.885 versus the IPO price of $0.88. Within the first few minutes of trading, more than 20 million stapled securities had changed hands.

The hospitality trust, which is more than 40 per cent controlled by Overseas Union Enterprise, had a weak pricing as a shorter duration of the real estate investment trust (Reit) assets and the volatility of hotel properties weighed on investor sentiment.

Demand for Reit listings in Singapore is one of the brighter spots in Asia's weak IPO market.

On Wednesday, SPH Reit, controlled by media group Singapore Press Holdings, made its debut at $0.98 per unit, up nearly 9 per cent from its offer price.

After fighting for a share of shoppers' wallets with their malls located along Singapore's prestigious Orchard Road, both companies had competed to win investors.