Centurion prices Hong Kong IPO shares at HK$3.18; deal 4.1 times subscribed
DORMITORY developer Centurion Corp has priced its secondary-listing offer in Hong Kong at HK$3.18 per share, near the mid-point of price talk between HK$3 and HK$3.30.
The 36-million-share offering was 4.1 times subscribed, based on applications for 112.5 million public offer shares and 35.2 million placement shares, the Singapore mainboard-listed company said on Monday before the market opened.
In response to demand for the public offer shares, Centurion has increased its public tranche to 10.8 million shares from six million shares, while reducing its placement tranche to 25.2 million shares from 30 million shares.
The offering raised about HK$69.7 milion (S$12.08 million) in net proceeds. The company will use HK$62.7 million to partly fund an expected A$45.5 million (S$46.2 million) development of new student accommodation in Adelaide, Australia, the company said. The rest of the development costs will be financed by internal funds and bank borrowings. The project is expected to be completed in the fourth quarter of 2018.
The remaining HK$7 million in net proceeds will be used as general working capital.
Wong Kok Hoe, chairman of the board and non-executive director of Centurion said: "We are pleased with the positive responses from both the institutional and retail investors during the share offer, reflecting investors' confidence in our business model, quality of our assets and management, and development prospects."
"Looking ahead, we will continue to selectively explore opportunities to grow our accommodation business through targeted and strategic expansion in existing and new markets, joint ventures and asset light strategies, including establishing and providing investment, asset and property management services."
Trading of Centurion shares in Hong Kong will start at 9.30am on Dec 12.
Centurion shares finished S$0.025 or 4.5 per cent higher at S$0.58 on Monday.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Frasers Centrepoint Trust posts 1.8% drop in H1 DPU to S$0.06022
TSMC says ‘A16’ chipmaking tech to arrive in 2026, setting up showdown with Intel
US seeks 36 months’ jail for Binance founder Zhao
Keppel’s Q1 revenue down 6.3% to S$1.5 billion; net profit up with exclusion of legacy O&M assets
Cisco says hackers subverted its security devices to spy on governments
Stocks to watch: Keppel, FCT, Suntec Reit, OUE Reit, Clint, Digital Core Reit, OKP, Cordlife