ARA US Hospitality Trust debuts on SGX at $1.19 apiece

Its IPO raised $679.2m in gross proceeds.

Singapore-based stapled trust ARA US Hospitality Trust has opened in the stock exchange with $1.19 (US$0.875) apiece after its IPO of 379,776,300 stapled securities, an announcement revealed.

The offering price of $1.2 (US$0.88) per staple security, which is slightly higher than its opening price. ARA US Hospitality Trust has raised $679.2m (US$498m) in gross proceeds.

It also stated that the indications of interest received for the placement tranche of 328,640,300 stapled securities have been fully subscribed. The valid acceptances for the reserved stapled securities also resulted in all 8,585,000 of these securities being allocated.

As at the close of the IPO, there were 3,134 valid applications for 54,744,400 stapled securities. The public offer was approximately 1.1 times subscribed.

The listing of ARA US Hospitality Trust brings the total number of SGX-listed REITs and property trusts to 43, with a combined market cap of about $99b.

ARA US Hospitality Trust comprises of real estate investment trust ARA US Hospitality Property Trust and registered business trust ARA US Hospitality Management Trust. The company has an initial portfolio of 38 hotels located across 21 states in the US.