Nuffnang

Monday, 4 October 2010

Mapletree Industrial Trust

Mapletree Industrial Trust is offering 594.9m units at $0.93 per unit. DBS and Goldman Sachs is the joint global coordinators and together with Citi and SCB act as the underwriters as well. The company is poised to be one of Singapore's largest listed REIT with an initial portfolio of 70 properties valued at $2.1 billion on 31 Aug 2010. The properties are spread all around Singapore.


The "annualised" yield for FY2010/2011 is 7.6% and projected to grow to 8.0% to FY2011/2012. The IPO will close on 18 Oct at 8am. The placement tranche of 488.7m was overwhelming subscribed and cornerstone investors took 322.6m shares! Luckily, they have a big public tranche of 106.1m for the people in the street. The company will have a market cap of $2.09 billion. For the year ended 31 March 2010, the REIT has a revenue of $178m and a net income of S$86.7m.


The cornerstone investors are APG, AIA, Henderson, Columbia, Shaw and Prudential. The NAV is S$0.86 and the IPO represents price-to-book premium of 1.08x.


The peers include Ascendas Reit (6.19%), Cambridge Industrial Trust (8.92% closest comparison?) etc but for convenience, i will group it with the logistics Reits such as Mapletree Logistics (6.86%) as well. From bloomberg, the peers are trading at between 6-8%.


Again, MIT managed to priced itself at the higher end of the IPO price range due to overwhelming demand. I would consider this REIT as a better buy than Global Logistics (since both are launched around the same period). Assuming a yield compression to 6% before investors switch out to other Reits with better yield, the possible price will be around  $1.18 to $1.24 and that represents a more than 20% upside. Hopefully it will not benchmark itself to Cambridge valuation. Happy investing...


15 Oct - they ran out of prospectus...

11 comments:

Loh Hon Chun said...

Indicative Timetable:
Institutional Roadshow: 30 Sep – 8 Oct
Book close 8 Oct (all regions) - JBRs reserve the right to close the book early
Expected allocation & MAS registration : 12 Oct
Public Offer: 13 Oct –18 Oct
Listing: 21 Oct (2pm)

Anonymous said...

Hi was wondering are the copies of the prospectuses out?

2Y Capital said...

Not yet. Should be out next week.

Anonymous said...

Hi, I think I have missed the IPO boat, does Maple get listed for trading on 21 Oct?

Loh Hon Chun said...

Public Offer: 13 Oct –18 Oct
Listing: 21 Oct (2pm)

Anonymous said...

bro Loh, meaning can the IPO is open from 13th to 15th?

sorry, I am a complete noob in this matter.

2Y Capital said...

yeah, you havent missed the boat. It isnt launched yet.

Loo Eng ANn said...

I & my friend applied total 26000 units, but we got none of the share from the MIT. Is that because they actually played fool of public & all their shares allotment is mean for their internal people? How to lodge a complain over this issue?

Anonymous said...

It is not entirely for the internal people. I managed to get MIT from IPO.

2Y Capital said...

Better luck next time. My spouse got it from the public tranche while mine was 'not successful'. Not successful for Anchun for both applications either :(

Loh Hon Chun said...

looks like ipo craze is back.

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