Sabana – BT

Sabana Reit IPO priced at $1.05 a share, to raise $491m

SABANA Shariah Compliant Reit, which owns industrial properties in Singapore, has priced its IPO at $1.05 a share, the midpoint of an indicative range, to raise $491 million, IFR reported yesterday, citing sources.

Sabana Reit, Singapore’s first Islamic Reit and the largest syariah-compliant property trust anywhere, is offering 605.8 million units in the initial public offering (IPO). It had originally set a price guidance of $1.00-$1.10.

The retail tranche of the IPO, which started later yesterday, will close on Nov 24 and the units will begin trading on Nov 26, IFR added.

Sabana controls 15 industrial properties in Singapore with an aggregate floor area of about 3.3 million square feet.

The manager of the Reit had forecast in a draft prospectus a distribution yield of 8.45 per cent for 2011 and 8.48 per cent for 2012 based on the minimum offer price of $1.00. FIL Investment Management Hong Kong, a unit of US fund manager Fidelity, and Bahrain’s al-Salam Bank are among the cornerstone investors that will buy 101.8 million units in the IPO.

HSBC is the sole financial adviser for the IPO and is joint global coordinator, bookrunner and underwriter with United Overseas Bank and Daiwa. — Reuters