Daiwa House Logistics House IPO sees public offer subscribed 9.5 times, Companies & Markets News & Top Stories
SINGAPORE (THE BUSINESS TIMES) – Daiwa House Logistics Trust (DHLT), a real estate investment trust (Reit) that will invest in logistics and industrial real estate across Asia, announced on Thursday (November 25) that the public offering of 25 million shares in Singapore investors as part of the initial public offering (IPO) were subscribed 9.5 times.
When the offer closed on Wednesday lunchtime, 7,543 valid applications for 237 million units were received for the public offer in Singapore.
The international placement tranche of over 219.4 million units at an offer price of 80 cents each was subscribed 4.9 times.
The Reit manager said the placement tranche “attracted a lot of interest from a good mix of institutional long-only investors, insurance companies, multi-strategy funds, family offices and high net worth individuals”.
Separately, Cornerstone investors have entered into separate subscription agreements at the same offering price for a total of nearly 336.1 million units, representing 49.8 percent of the total number of units outstanding at the IPO.
Mr. Takeshi Fujita, the manager’s chief executive officer, said in a statement that he had “please” strong support for the offer. “We believe this underscores the appeal of our portfolio of high quality modern logistics real estate as well as the strength of our sponsor – Daiwa House Industry Co, one of the largest construction and real estate development companies in Japan.”
DHLT plans to use the bulk of the gross proceeds from the IPO – along with the borrowing of 35.6 billion yen ($ 421.1 million) in IPO credit facilities – to fund the purchase of the original portfolio of 14 logistics properties for 840, US $ 5 million to be used in Japan.
The remainder of the funds will be used for issuing expenses, other transaction costs, cash reserves and working capital, and a refundable consumption tax of $ 67.9 million.
The properties in the IPO portfolio have an average age of 3.7 years with a total land area of 420,393 square meters (m²); The total net rental area is 423,920 m².
DBS Bank and Nomura Singapore were the joint issue managers for the IPO. Citigroup Global Markets Singapore, Credit Suisse Singapore, Daiwa Capital Markets Singapore, Mizuho Securities Singapore, Morgan Stanley Asia Singapore and SMBC Nikko Capital Markets Limited joined as joint book runner and underwriter.
Trading in DHLT shares on the mainboard of the Singapore Exchange will begin on Friday at 2:00 p.m.