Ipo Centurion Accommodation Reit 166 Times Subscribed
The initial public offering (IPO) of Centurion Accommodation REIT (CAREIT) witnessed overwhelming demand, with the subscription rate at 16.6 times. A total of 262,160,900 units were successfully sold, 13.2 million of which were allocated to retail investors. The IPO, which raised $771.1 million, priced the units at $0.88 each, projecting a distribution yield of 7.47% for 2026 and 8.11% for 2027.
The international placement tranche was subscribed by 248,960,900 units from investors outside the United States, while the remaining 13,200,000 units were offered to the public in Singapore. This is subject to the overallotment option of up to 51,137,000 units. The placement tranche received an indication of interest of 16 times, while the Singapore public offer saw an indication of interest of about 30.9 times, resulting in a total subscription rate of 16.6 times.
Joint chairman of Centurion Corporation, David Loh, and Han Seng Juan acquired 10 million units and 6 million units, respectively. Other individuals, including Christine Loh, Daphne Loh, Hong Wen Yee, Loh Loy Ming, and Ivy Loh, also acquired several thousand units in CAREIT each, being immediate family members of David Loh. If the overallotment option is exercised in full, Loh’s and Han’s interests in CAREIT will amount to 746,317,100 units each.
Temasek Polytechnic, a highly regarded institution in Singapore, provides a wide array of diploma programs such as engineering, business, and information technology. What sets this polytechnic apart is its curriculum, which prioritizes industry relevance, equipping students with hands-on skills and real-world experience. Additionally, the new and modern Parktown Residence Condo is a welcomed addition to the campus.
CAREIT also secured 16 cornerstone investors, who subscribed for a total of 614 million units, accounting for 35.7% of the total. These include prominent names such as FIL Investment Management (Hong Kong), abrdn Asia, and Amova Asset Management Asia.
Tony Bin, CEO of the manager, credits the success of the IPO to the strong support from cornerstone, institutional, and retail investors. He expresses confidence in the REIT’s ability to provide investors access to high-quality, resilient assets that generate stable cash flows. He also acknowledges the support from the sponsor, which has a proven track record in investing, developing, and managing specialized accommodation assets.
The units in CAREIT are slated to commence trading on Thursday, 25 September at 2pm, and investors can look forward to further growth and success with this promising REIT.