Ascendas Hospitality Trust has reduced the size of its initial public offering in Singapore.
It is now offering 437.325 million stapled securities, a downward revision from initial plans to sell between 506.075 million and 529.648 million units.
In its prospectus registered on Wednesday, Ascendas Hospitality said the shares will be priced at S$0.88 per stapled security.
Ascendas Hospitality will also sell S$247.3 million worth of securities to its sponsor Ascendas Group as well as S$76.5 million securities to cornerstone investors including hotel operator Accor Asia Pacific.
All in, the market cap for Ascendas Hospitality Trust is S$707 million, compared to S$770 million in a preliminary prospectus lodged previously.
The Public Offer opens at 8.00am on July 19 and closes at noon on July 24.
In a separate statement, Ascendas Hospitality said it will proceed with the IPO without the Pullman Ambassador Changwon hotel in South Korea, which was listed in the initial portfolio.
Ascendas Hospitality explains that it was informed recently that injunctions had been made by creditors against the vendor of the South Korean hotel, and it will affect the Trust’s ability to acquire the property on time for its inclusion in the portfolio.
With the removal of the South Korean hotel, the portfolio will now comprise 10 hotels valued at some S$1.06 billion, down from S$1.2 billion previously.
These assets are located in China, Australia and Japan.
Ascendas Hospitality Trust is made up predominately of Ascendas Hospitality Business Trust (80 per cent), with the other 20 per cent of the counter stapled to Ascendas Hospitality REIT.
The Stapled Securities are expected to commence trading on the SGX-ST at 2.00pm on July 27.
Source : Channel NewsAsia – 18 Jul 2012