UI Boustead Reit’s public offer of 33.9 million units 2.9 times subscribed

[SINGAPORE] The public tranche of UI Boustead Real Estate Investment Trust’s (Reit) initial public offering (IPO) – the first mainboard and Reit listing on the Singapore Exchange in 2026 – was 2.9 times subscribed, its manager said on Wednesday (Mar 11).

The IPO of 677.2 million units at S$0.88 apiece – excluding the allotment option – comprised a public offer of 33.9 million units and an international placement of 643.3 million units.

For the public offer, there were 4,697 valid applications for 99.9 million units, translating to a subscription rate of 2.9 times.

The manager said that institutional demand for the placement tranche was “robust”, with a subscription rate of 3.3 times and drawing about S$1.9 billion in demand.

It added that an additional 54.6 million units were overallotted and allocated to applicants under the placement tranche.

Cornerstone commitments totalled about S$377.7 million. These, the manager said, were “mainly from global and regional long-only institutional investors and family offices”.

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In total, the exercise raised gross proceeds of about S$973.6 million. The offering price represented a price-to-net asset value of one, with a projected distribution yield of 7.8 per cent for FY2027.

UI Boustead Reit’s initial portfolio comprises 23 properties in Singapore and Japan, with a total agreed property value of about S$1.9 billion.

The counter is expected to commence trading on the Singapore Exchange mainboard at 2 pm on Thursday.