24-04-2019, 01:17 PM
ARA US Hospitality Trust Seeks $451 Million in Singapore IPO
> Cornerstone investors have agreed to subscribe to 26% of offer
> Deal marks return to public markets for ARA founder John Lim
By Joyce Koh
April 24, 2019, 8:02 AM GMT+7 Updated on April 24, 2019, 9:43 AM GMT+7
ARA US Hospitality Trust is seeking to raise $450.7 million in Singapore’s first main board initial public offering this year.
The hospitality group will offer units at 88 cents apiece, according to terms of the deal obtained by Bloomberg. Six cornerstone investors have agreed to invest a combined $116.5 million, equivalent to 25.8 percent of the total offer.
The listing is a return to Singapore’s public markets for John Lim, the founder of ARA Asset Management Ltd. A group including Lim and New York-based private equity firm Warburg Pincus LLC agreed to buy out the manager of real estate trusts in late 2016, valuing the firm at around S$1.8 billion ($1.3 billion). Lim had said earlier that year his company’s stock was undervalued relative to its earnings, peers and historical prices.
Singapore’s IPO market has been in the doldrums for some time. The ARA IPO will be the first IPO of size in Singapore this year, as companies have raised just $28 million from first-time share sales, according to data compiled by Bloomberg. In 2018 the money raised from the stock exchange’s 15 IPOs, excluding depositary receipts, fell more than 80 percent to $535 million.
More details in https://www.bloomberg.com/news/articles/...emium-asia
> Cornerstone investors have agreed to subscribe to 26% of offer
> Deal marks return to public markets for ARA founder John Lim
By Joyce Koh
April 24, 2019, 8:02 AM GMT+7 Updated on April 24, 2019, 9:43 AM GMT+7
ARA US Hospitality Trust is seeking to raise $450.7 million in Singapore’s first main board initial public offering this year.
The hospitality group will offer units at 88 cents apiece, according to terms of the deal obtained by Bloomberg. Six cornerstone investors have agreed to invest a combined $116.5 million, equivalent to 25.8 percent of the total offer.
The listing is a return to Singapore’s public markets for John Lim, the founder of ARA Asset Management Ltd. A group including Lim and New York-based private equity firm Warburg Pincus LLC agreed to buy out the manager of real estate trusts in late 2016, valuing the firm at around S$1.8 billion ($1.3 billion). Lim had said earlier that year his company’s stock was undervalued relative to its earnings, peers and historical prices.
Singapore’s IPO market has been in the doldrums for some time. The ARA IPO will be the first IPO of size in Singapore this year, as companies have raised just $28 million from first-time share sales, according to data compiled by Bloomberg. In 2018 the money raised from the stock exchange’s 15 IPOs, excluding depositary receipts, fell more than 80 percent to $535 million.
More details in https://www.bloomberg.com/news/articles/...emium-asia
Specuvestor: Asset - Business - Structure.