OUE C-Reit launches IPO at 80 cents a unit

Singapore

OUE Commercial Real Estate Investment Trust (OUE C-Reit) kicked off the first mainboard initial public offering (IPO) of the year yesterday evening, with a price of 80 cents per unit, a forecast distribution yield of 6.8 per cent for this year, and a 24 per cent discount to net asset value (NAV).

The retail offering of 56.25 million units is open for application until noon on Thursday.

Units begin trading at 2pm on Jan 27.

The Business Times understands the institutional tranche of 151.75 million units was two times subscribed amid a cash-rich market still attracted by yield. However, the threat of rising interest rates remains a dark cloud over the entire Reit sector.

OUE C-Reit is expected to raise $166.4 million from the offering and a separate $180 million from corne…