Elite Commercial REIT IPO oversubscribed 3.4 times

The IPO is expected to raise about $140.38m.

Elite Commercial REIT’s initial public offering (IPO) of 114.69 million units received subscriptions amounting to about $480.16m (£266.8m), according to a press release. It was 3.4 times subscribed.

The international placement tranche of 108.95 million units to investors outside the US received indications of interest amounting to over $421.67m (£234.3m), which represented a subscription rate of 3.2 times.

Meanwhile, the Singapore public offer of 5.73 million units clinched 3,058 valid applications for 47.85 million units amounting to about $58.49m (£32.5m), making it 8.3 times subscribed.

Priced at $1.21 (£0.68) per unit, the IPO aims to raise about $140.38m (£78m).

At the same time, each client of UBS AG Singapore Branch and UBS AG Hong Kong Branch, Bank of Singapore and CIMB Bank Berhad Singapore Branch entered into a separate subscription agreement for an aggregate of 77,827,900 units at the same offering price.

Both this and the IPO are expected to raise gross proceeds of about $235.58m (£130.9m). The trading of Elite Commercial REIT’s units on the Main Board of the SGX-ST is expected to begin on 6 February.

With an appraised value of $574.28m (£319.1m) and at 100% occupancy as at 31 August 2019, Elite Commercial REIT’s initial portfolio of 97 commercial buildings across the UK is primarily occupied by the Department for Work and Pensions (DWP).