The IPO of Mapletree Industrial Trust (MIT) has seen a strong take-up rate with an oversubscription of approximately 37.9 times, headed by demand from institutional players.
This take-up means that a total of $20.1 billion of application money was released for the IPO, said MIT.
MIT is expected to raise gross proceeds of up to $1.19 billion from the IPO, if 91.75 million units in an overallotment option are exercised.
The company is selling 1.28 billion units at 93 cents each, including about 595 million units, which comprise of 106 million units that were sold to the public and 489 million units that were placed out.
Six cornerstone investors, which include AIA, Dutch pension fund APG, Columbia Wanger Asset Management, US investment company DE Shaw, Henderson Global Investors and Prudential Asset Management (Singapore), will subscribe for a separate 323 million units.
MIT’s two subsidiaries, Sienna Pte Ltd and Mapletree Dextra Pte Ltd, will also subscribe for 359 million units, giving the company a post-IPO stake of approximately 31 percent once the greenshoe option is fully exercised.
The 489 million unit placement tranche had an oversubscription of 39.6 times, with a total value of more than $18 billion.
The public tranche is comprised of 25.5 million units set aside for subscription by the company’s management, directors, business associates and employees.
The remaining 80.6 million units, which represent almost 6.3 percent of the total unit sale, excluding the overallotment, were oversubscribed by 27.7 times, translating to about $2.1 billion in total value.
The company’s offer price represents 7.6 percent in annualised distribution yield for 2010, which is likely to increase 8 percent next year.