Centurion Accommodation Reit’s offer of 262.1 million units oversubscribed by 16.6 times

[SINGAPORE] The manager of Centurion Accommodation Real Estate Investment Trust (Reit) on Wednesday (Sep 24) said that the 262.2 million units on offer were 16.6 times subscribed.

This was based on indications of interest and valid applications, the manager added, but not applications by connected persons or those mentioned in rule 240 of the Singapore Exchange’s (SGX) listing manual.

This rule states that parties such as, but not limited to, directors or substantial shareholders must disclose their aggregate interest – and the circumstances behind the acquisition of that interest – before the issuer’s securities are listed.

Including such applications, the offering was about 16.7 times subscribed, the Reit manager said.

The offer comprised an international placement tranche of 249 million units for investors outside of the United States, and 13.2 million units for the public in Singapore, subject to an over-allotment option of up to 51.1 million units.

The placement tranche was oversubscribed by around 16 times, and the Singapore public offer, by about 30.9 times.

In consultation with the manager, the joint bookrunners and underwriters decided on a balloting ratio of 35:50 for the Singapore tranche. This was across all unit ranges, “to ensure a reasonable spread of unitholders”.

Those who applied for the range of 10,000 to 19,000 units were granted the largest proportion of the Singapore public offer, at 23.3 per cent; 2,195 applicants were given 1,400 units each.

The smallest proportion, 1 per cent, was alloted to those who had applied for one million or more units – the highest range – with 25 applicants receiving 5,100 units each.

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The Reit launched its initial public offering on Sep 18 at S$0.88 per unit. It was spun off from mainboard-listed Centurion Corp , the owner and operator of international worker and student accommodations.

Units of the Reit will begin trading at 2 pm on Sep 25.