Universal Terminal IPO likely to take form of stapled securities

Singapore

UNIVERSAL Terminal's impending initial public offering (IPO) on the Singapore Exchange could take place before year-end in the form of stapled securities to raise up to S$1 billion.

The Business Times understands that the hybrid form of units to be offered by the Singapore-based petroleum storage company is much like that of CDL Hospitality Trust, which comprises elements of a real estate investment trust (Reit) and those of a business trust.

It is also believed that the majority of the stapled securities will function like a Reit - comprising rental income from the core petroleum storage business while income from its other services, such as product blending, bunker barge operations, bunkering services, intertank product transfe…