MIT – BT

GLP, MIT take a breather, count their gains

Their trading volumes continue to reflect healthy interest; both end higher for the week

SHARES of Global Logistic Properties (GLP) and Mapletree Industrial Trust (MIT) – the two largest initial public offerings (IPOs) this week – pulled back yesterday, as the broader market struggled for direction.

But their trading volumes continued to reflect the healthy interest in the counters – and both finished higher for the week.

Shares of GLP finished four cents down at $2.25 apiece yesterday, seeing almost 66 million shares change hands. MIT closed five cents down at $1.11, with almost 112 million shares traded.

One local trader attributed the dips in share price yesterday to investors being keen to lock in their profits on the two stocks before the end of the week.

And certainly, there was much to be had for MIT, whose share price soared 29 per cent to $1.20 in intra-day trade on its debut on Thursday, from an offer price of $0.93, before closing at $1.16. And, despite slipping yesterday, MIT still locked in a 19 per cent gain for the week.

Its closing price yesterday brings MIT's market cap to a total of $1.62 billion, based on a float of 1.46 billion shares. It is the largest Singapore real estate investment trust (Reit) IPO, to date.

MIT brings the combined market capitalisation of all the Reits and property trusts listed on the Singapore Exchange (SGX) – 24 in total – to some $36 billion, making Singapore the largest Reit market in Asia outside of Japan.

GLP also finished significantly stronger for the week. Its closing price of $2.25 yesterday is a 15 per cent gain on its $1.96 offer price. The counter also touched a high of $2.29 on Tuesday, the day after it made its trading debut.

Its market cap now stands at $10.1 billion, making it one of the larger stocks on the exchange.

GLP – which has Government of Singapore Investment Corporation (GIC) as its single-largest shareholder – is also the largest Reit IPO in the world.

It raised a total of $3.9 billion from its offering, having exercised its overallotment option of 234.6 million shares this week. This means, GLP beat out the previous record holder, Hong Kong-listed Link Reit which, in 2005, raised US$2.9 billion (S$3.8 billion) in its IPO.

GLP's IPO is also Singapore's second-largest after SingTel's in 1993, which raised $4 billion.

The sterling performance of the two new listings this week is expected to breathe life into the IPO market. Market watchers say GLP and MIT's performance this week should inspire other IPOs to come to the market.

SGX chief Magnus Bocker has said that he expects more IPOs in the current quarter, and that the number of IPOs should touch levels seen in the first quarter of fiscal 2010. In that quarter – or the three months ended September 2009 – SGX ushered in 11 new listings.