Dasin Retail Trust's Shiqi Metro Mall, which is expected to be inducted by mid-2017. (Photo: Dasin Retail Trust)

Both public and placement tranches for Dasin Retail Trust’s initial public offering (IPO) has been oversubscribed, the manager for the trust announced on 19 January.

At the close of the IPO at 12 p.m. on the previous day, the retail tranche of 2 million units was 7.6 times oversubscribed, with 734 valid applications for 15,268,100 units.

Meanwhile the IPO’s placement tranche, which offered 148,768,900 units to mostly institutional investors, was also oversubscribed, said Dasin Retail Trust, although the oversubscription rate has not been disclosed.

As such, DBS Bank, which has been appointed as the IPO’s issue manager, and joint bookrunner, has over-allotted an additional 9,343,300 units, all of which have been issued to applicants under the placement tranche, said Dasin Retail Trust.

In addition, Chinese government-owned China Orient Asset Management has now emerged as one of Dasin Retail Trust’s substantial unitholders immediately after the offering, with a holding of 26,050,000 units, representing a stake of more than 5% of the total number of units in issue.

Units will be credited into the securities accounts of successful applicants by 2 p.m. on 20 January 2017, with units commencing trading on the Singapore Exchange then.

Dasin Retail Trust lodged its final prospectus for the IPO with the Monetary Authority of Singapore (MAS) on 13 January, with an initial portfolio of three retail properties across Zhongshan City, China.

The trust has a mandate to own or develop income-producing real estate in the Greater China region, including Hong Kong and Macau.

Based on the IPO of SGD0.80, Dasin Retail Trust is forecasting a distribution yield of 8.5%, and 9.0% for the reporting periods of 2017, and 2018 respectively.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.