Industrial property developer Soon Hock IPO 9.8 times subscribed
Its Singapore public offer of 2.8 million shares is 16.9 times subscribed
[SINGAPORE] Industrial property developer Soon Hock on Wednesday (Oct 15) said that its 21.6 million shares on offer were 9.8 times subscribed.
Its Singapore public offer of 2.8 million shares were 16.9 times subscribed, and drew 1,444 valid applications for 47.3 million shares in all.
The international offer of 18.8 million shares was 8.7 times subscribed, with indication of interest received for some 164 million shares.
Each share was priced at S$0.58.
Three substantial investors were allocated more than 5 per cent of the total offering shares – Tokio Marine Life Insurance Singapore, Pheim Asset Management (Asia) and Lion Global Investors.
They were allocated 1.08 million shares each.
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Those who had applied for between 10,000 and 24,900 shares were allocated the largest proportion of the Singapore offering, or 38.7 per cent, with 361 applicants were given 3,000 shares each.
On the other end of the spectrum, those who applied for between 75,000 and 99,900 shares were only allocated 1.9 per cent, with nine applicants receiving 6,000 shares each.
Concurrently, cornerstone investors have entered separate agreements with the company to subscribe for 61.4 million new shares, valued at about S$35.6 million.
Cornerstone investors, typically large institutions that subscribe before an initial public offering (IPO), include Amova Asset Management Asia, ICHAM Master Fund VCC, Maybank Securities and UOB Kay Hian.
Together with the cornerstone subscriptions, the total deal size amounted to about S$48.1 million.
The company expects to raise net proceeds of about S$34.6 million from the IPO and issuance of cornerstone shares. The proceeds will go towards acquiring new land sites and buildings for development and redevelopment, as well as partly financing existing projects in its pipeline.
Ethan Aw from Evolve Capital Advisory initiated coverage for the counter, with a “buy” call and a target price of S$0.74 on Wednesday.
He said that as at March this year, Soon Hock is one of the top players within the strata industrial sale market, with a market share of some 6 per cent based on gross floor area, per Cushman & Wakefield estimates.
“We like that Soon Hock has been actively replenishing their land bank, and has been launching almost one project per year, with the exception of the pandemic era as well as the management being held up by the delisting of Cogent Holdings previously around 2018,” Aw said.
He added that Soon Hock also has major development projects that are underway, including Stellar@Tampines and Skye@Tuas, both of which have 30-year leasehold facilities with a combined gross development value of nearly S$700 million.
Soon Hock registered its prospectus on Oct 8, and its shares are expected to begin trading on the SGX on a “ready” basis at 9 am on Thursday.
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