Mapletree Industrial IPO raises S$853mln

Company is selling 917.5mln shares at 93 Singapore cents each for debts repayment and property purchases.

Mapletree Industrial Trust, controlled by Singapore’s Temasek Holdings Pte, is set to raise S$853 million ($654 million) in an initial public offering, two people with knowledge of the matter said.

The real estate investment trust is selling 917.5 million shares at 93 Singapore cents apiece, the people said, requesting anonymity because the pricing hasn’t been publicly announced. Mapletree, owned by the real estate unit of Singapore’s state investment company, had marketed the units at 88 Singapore cents to 93 Singapore cents.

Mapletree Industrial is raising money to repay debts and buy properties in Singapore as a revival in the city-state’s economy drives rents higher. Temasek, which oversees S$186 billion, joins Government of Singapore Investment Corp. in taking assets public this month after the benchmark index rose 12 percent last quarter.

“The outlook for industrial properties is positive in Singapore,” said Anni Kum, a Singapore-based analyst at Kim Eng Securities Pte. Ltd. “Rentals are recovering, capital values have stabilized and the yield is higher than comparables.”

View the full story in Bloomberg.