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Investors snapping up ERA IPO shares

INVESTORS seem to be snapping up shares offered under the initial public offering (IPO) of APAC Realty Ltd, which operates under the ERA brand.

The company received strong indicative interest for both the international placement and public offering of its IPO.

The IPO comprises an international placement of over 44.5 million shares and a public offering of 4.4 million shares at S$0.66 per share.

APAC Realty said that at the close of the IPO by Tuesday noon, it had received 3,035 valid applications put in for a total of over 127.7 million shares for its public offering. Application monies received for the public offering amounted to about S$84.3 million. This translates to the public tranche being 29 times subscribed.

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The company also received aggregate indications of interest for over 597.6 million placement shares with a total value of about S$394.4 million. The international placement is about 13.4 times subscribed.

DBS Bank acted as the sole issue manager, book runner and underwriter to the IPO. The bank, in its capacity as stabilising manager, has over-allotted 9.75 million shares to the placement tranche to meet the strong demand from institutional investors during the book-building period.

APAC Realty has separately entered into cornerstone subscription agreements for an aggregate of over 39.3 million shares with FIL Investment Management (Hong Kong) Ltd, Qilin Asset Management Pte Ltd, Asdew Acquisitions Pte Ltd and Azure Capital Pte Ltd.

The company estimated that it will receive S$27.1 million out of the S$61.3 million in net proceeds that will be raised from the IPO and issue of cornerstone shares.

The IPO marks the return of ERA to the Singapore Exchange after its holding company, Hersing Realty, was delisted in November 2012.