OUE's $476 mln hospitality trust IPO priced at bottom of range-sources
HONG KONG, July 18
HONG KONG, July 18 (Reuters) - Overseas Union Enterprise will raise about S$600.2 million ($476 million) after pricing the initial public offering of its hospitality trust at the bottom of its indicative price range, two sources with knowledge of the matter said.
OUE Hospitality Trust is selling about 682 million units in the deal at S$0.88 a unit, sources said, compared to an indicative price range of S$0.88 to S$0.90 a unit.
The company's parent OUE will buy the remaining 626.8 million units, or about half the listed entity.
The price translates to a projected yield of 7.46 percent for 2014, one of the sources told Reuters. The source declined to be identified because the price details are not public.
OUE's pricing comes a day after Singapore Press Holdings said its REIT will raise $400 million after pricing the IPO at the top of its indicative range.
SPH benefited from a portfolio of only shopping malls, giving the company a more stable revenue than OUE, which has a mall and a hotel in its portfolio, a third source said. ($1 = 1.2619 Singapore dollars) (Reporting by Elzio Baretto and Saeed Azhar; Editing by Edwina Gibbs)
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