FHT – AmFraser

FRASERS HOSPITALITY TRUST IPO SET TO RAKE IN $365M

FRASERS Hospitality Trust (FHT) is slated to raise $365.2 million from its initial public offering (IPO) and from cornerstone investors. Its offer price of 88 cents translates into a yield of 7 per cent for the projection year from October 2014, said its prospectus lodged yesterday.

FHT is selling 182 million stapled securities in its IPO at 88 cents apiece. This will consist of a placement tranche of 136.6 million stapled securities and a public tranche of 45.5 million stapled securities.

Its sponsor Frasers Centrepoint Limited (FCL) is injecting six serviced residences into FHT; FCL's major shareholder TCC Group is injecting the other six hotels that include InterContinental Singapore and The Westin Kuala Lumpur.

With an initial $1.66 billion portfolio of 1,928 hotel rooms and 842 serviced residence units, FHT will be the largest global hospitality portfolio listed here in terms of the number of rooms, the company said.

Post‐listing, FCL and the TCC Group will hold respective 22 per cent and 43 per cent stakes in FHT before the over‐allotment option is exercised. FHT is expected to have a market value of $1.77 billion, based on its offer price.

FHT has a policy to distribute 100 per cent of its distributable income in the forecast period of 2014 and 2015 and at least 90 per cent of its distributable income thereafter.

The offer will open on July 1 and close on July 10. Trading of FHT securities will begin on July 14.