Sabana – DJ

SINGAPORE (Dow Jones)–Sabana Shari''ah Compliant Industrial Real Estate Investment Trust (M1GU.SG), or Sabana REIT, Friday opened 5.7% lower on its debut on the Singapore Exchange.

Sabana REIT, the world''s largest listed Shariah-compliant REIT by total assets, opened at S$0.99 compared with an initial public offering price of S$1.05. It was trading at S$1.00, or 4.8% lower than the IPO price, at 0610 GMT.

The Singapore-based company, which priced its offer at S$1.05 per unit, saw its IPO subscribed 2.5 times, allowing it to raise a total of S$666.40 million in gross proceeds.

Sabana, which is also the first Shariah-compliant listing in Singapore, had offered a total of 632.8 million units, of which 101.8 million were placed with cornerstone investors.

Of the remaining 507.99 million units, a total of 432.49 million were placed with institutional investors, 25.5 million with the public and the remaining 50 million reserved for company officials.

Sabana intends to use the proceeds of the IPO to purchase properties and to pay off debt-related costs.

The REIT''s assets are estimated at S$850 million.