ARA US Hospitality Trust prices IPO at US$0.88 per share

It is looking to raise US$498m.

ARA US Hospitality Trust has priced its initial public offering (IPO) at US$0.88 per stapled security with expected proceeds of US$498m, an announcement revealed.

The offering of 379.78 million stapled securities consists of an international placement of 328.64 million stapled securities to investors, outside the US, including 8.59 million stapled securities reserved for subscription by the directors, management, employees and business associates of ARA and its subsidiaries. It also consists of an offering of 51.14 million stapled securities to the public in Singapore.

Also read: ARA lodges IPO prospectus to become first listed US hospitality trust

The Public Offer will open at 9 p.m. on 2 May and will close at 12 noon on 7 May. Trading of the stapled securities in ARA US Hospitality Trust on the Main Board of the Singapore Exchange Securities Trading (SGX-ST) is expected to commence at 2 p.m. on 9 May.

DBS Bank is the sole issue manager for the offering. DBS Bank, Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB) are the joint financial advisers and joint global coordinators. DBS, OCBC, UOB and Credit Suisse (Singapore) are joint bookrunners and underwriters for the offering.

Concurrently, but separate from the offering, ARA US Hospitality Trust revealed that it has also secured commitments of US$116.5m from six cornerstone investors, including Bank of Singapore, DBS Bank, Credit Suisse AG, UOB and ICH Capital.

“The Cornerstone Investors have subscribed for an aggregate of 132.38 million stapled securities, representing 23.4% of the total number of stapled securities in issue immediately after completion of the offering and the redemption,” the firm noted.