PCRT – BT

Perennial China 1.6 times subscribed

PERENNIAL China Retail Trust (PCRT) has raised $776.2 million from its initial public offering. At the close of its IPO, its institutional placement and public offer tranches were 1.6 times subscribed.

PCRT had initially planned to list earlier at about $1 a unit to raise some $1.1 billion but plans were put on hold in March, reportedly due to volatile market conditions. When plans were revived, its units were priced at $0.70.

PCRT had earlier secured eight cornerstone investors who subscribed for 516.65 million units. With additional units subscribed by cornerstone investor Shanghai Summit and the subscription by sponsor Perennial Real Estate under the placement tranche, these parties hold about 60.8 per cent of PCRT on the IPO’s completion.

The total offering of $776.2 million for subscription at $0.70 per unit comprised 545.221 million units (49.2 per cent of the offering) from the cornerstone investors and sponsor, while 511.451 million units representing 46.1 per cent had been placed out to international investors; and 52.128 million units (4.7 per cent) placed out to the public in Singapore.

Perennial China Retail Trust Management CEO Pua Seck Guan said: ‘We are very pleased with the warm reception that investors have given us, despite tough market conditions and a subdued appetite for new listings. We are especially encouraged by the strong support from real estate specialists, long-only funds and private wealth funds who account for over 80 per cent of the offering.’

He also went on to add that PCRT is well positioned to benefit from retail growth opportunities in China, which would allow it to provide unitholders an ‘attractive total return of strong net asset value growth and stable distributions’.

The balloting outcome for the public offer will be released today while the PCRT units will commence trading at 2pm tomorrow.