Daiwa House Logistics Trust closes flat at IPO price of S$0.80 in SGX mainboard debut

DAIWA House Logistics Trust (DHLT) closed flat at its initial public offering (IPO) price of S$0.80 on Friday (Nov 26), the day it made its trading debut on the mainboard of the Singapore Exchange (SGX).

Trading in units of DHLT commenced after the lunch break at 2pm, and opened at what would be its intra-day high of S$0.81 -- some 1.3 per cent above its IPO price.

The counter eased back to S$0.80 shortly after, and traded range-bound for the rest of the day.

Some 28.9 million shares changed hands on Friday with no married deals recorded, said ShareInvestor data.

The logistic and industrial real estate investment trust (Reit) announced on Nov 25 that the public offer of 25 million units to Singapore investors under its IPO was 9.5 times subscribed, and that the international placement tranche of over 219.4 million units was 4.9 times subscribed.

Based on the total of 675 million outstanding units, the Reit has a market capitalisation of S$540 million.

DHLT raised total gross proceeds of approximately S$575.5 million from its IPO on the SGX, including the issuance of the sponsor's subscription units, the cornerstone units as well as perpetual securities.

The Reit manager said the majority of the gross proceeds, together with the drawdown on 35.6 billion yen (S$421.1 million) of loan facilities, will go towards funding the S$840.5 million purchase of the initial portfolio of 14 logistics properties in Japan.

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