SINGAPORE - Mapletree Industrial Trust, a property trust linked to Singapore state investor Temasek, will raise at least S$853 million ($654 million) after pricing its IPO at the top of the indicative range, sources said on Monday.
Mapletree Industrial will sell units at S$0.93 each, which translates to an annualised dividend yield of about 7.6 percent. The trust had earlier set a indicative range of S$0.88 to S$0.93 a unit.
"It's at the top of the range... 93 (Singapore) cents," a source involved in the deal told Reuters.
The property trust, which owns factories and other industrial properties in Singapore, will update its draft prospectus and launch the retail portion of the initial public offering on Tuesday, a second source said.
The sources declined to be named because the information had not been made public.
Mapletree Industrial's IPO, coincides with a larger $3 billion offering by GIC's Global Logistic Properties (GLP) and pits Singapore's two sovereign funds in a battle for institutional and retail investors.
Analysts said both property-themed IPOs gathered a strong response from institutional investors, despite the overlap in the offer period, as they offer exposure to different countries.
Mapletree Industrial is a dividend play based on Singapore assets while GLP offers exposure to China's fast-growing economy.
The dividend yield offered by Mapletree Industrial is well above the 0.1-0.2 per cent annual interest rate paid on Singapore dollar deposits.
Mapletree Industrial, which is managed by Mapletree Investments, is selling 594.9 million units with an option to increase the offer by another 91.75 million units, according to the draft prospectus.
Cornerstone investors including insurers AIA and Prudential, UK fund manager Henderson and US hedge fund D.E. Shaw will subscribe for another 322.6 million units.
Mapletree Industrial will also sell 359.4 million units to two firms linked to Mapletree Investments, a wholly owned unit of Temasek.
Including the greenshoe option but excluding the placement to the firms linked to Mapletree Investments, the IPO could raise as much as S$940 million.
DBS, Citigroup, Goldman Sachs and Standard Chartered are bookrunners, issue managers and underwriters for the Mapletree Industrial IPO.
DBS and Citi are also involved in GIC's IPO alongside JPMorgan, UBS and CICC.