My Blog
Ascendas India Trust IPO
By Derek  •  July 29, 2007
By: Derek Lim Price: S$1.18 Placement: 392,000,000 Public: 20,000,000 Date of Offer: 25 July 2007, 12:00pm Closing: 30 July 2007, 7:00am Commence Trading: 1 August 2007, 2:00pm Underwriter: JPMorgan, Citi, DBS I believe many are turning to safer investments especially when the market tumble last week. Most REITs are CPF approved and I wonder why Ascendas is not - higher risk? Nevertheless, this also means that the odds of being balloted will be higher. The last major IPO was CapitalRetail China Trust with 33 million (11 million reserved) on offer to the public. Base on the above balloting results, I have decided to apply for 2 lots. I would have applied for 10 lots if I had the money but I'm comforted by the fact that the no. of units allocated is the same and balloting ratio increase only marginally (4.76% based on CRCT balloting results). Further reading on Ascendas India Trust By: Kleer Ascendas India Trust is a Singapore-based Business Trust established with the principal objective of owning income-producing real estate used primarily as business space in India. It will have an initial portfolio of 4 world class IT parks, namely: 1. International Tech Park Bangalore (69 acres) 2. International Tech Park Chennai (15 acres) 3. Cyberpearl, Hyperblad (6 acres) 4. The V, Hyperblad (19 acres) Expansion plans: 1. It has a strong "in-built" development pipeline of up to 4.2m sq ft of upcoming developments and available land. 2. It has right of first refusal from Ascendas (the company) which owns the Cybervale IT Park Chennai. 3. It has right of first refusal from Ascendas India Development Trust which has approx. 100 acres of land in Pune and Nagpur and other developments in the pipeline. Financial figures Intended IPO price range: $1.18 No. of shares available for public offer: 20m No. of shares available for placement offer: 392m Total post invitation share capital: Approx. 750.8m Projected Yield & Dividend distribution policy: The projected yields are 4.75% for 2008 and 5.8% for 2009. It plans to distribute 100% of its taxable income up to Mar 2009, and at least 90% thereafter. It plans to distribute quarterly dividends every 3 months ending 30 June, 30 Sept, 31 Dec, and 31 Mar. Summary: According to its prospectus, its NAV currently stands at approx. $1.18, so the IPO is priced rather fairly. Unfortunately, its yield is quite disappointing, at least than 5%. Surely one would expect more from a yield accretive type investment. The best thing about this Trust is the strength of its sponsor Ascendas: * One of Asia's leading providers of business space solutions, with more than 20 years of presence in Asia, and 14 years in India. * Manages a portfolio of properties comprising more than 34m sq ft across Asia. * There is an alignment of interest with investors through substantial ownership (it will hold 17% of the trust) and first right of refusals of properties offered to the Trust. Other substantial institutional investors include General electric (12%), Great Eastern (5.6%), Lianhe Investments - an SPH subsidiary (2%), and Forum - a private equity fund (1.4%). Probability of getting allotted for the IPO - GOOD I have only included the key points of the prospectus. Certain information have been omitted in order to keep my write-up short, but you can find the entire prospectus here.
Read the full article
By Derek
Derek is an investor who follows Peter Lynch style of investing. He prefers to use simple and straight forward information for stock analysis. He started with the intention to bring together all bloggers and professionals who are interested or already in the area of Finance and Investing, and to create a community where everyone is free to write and to share their articles, experience and opinions.

Your email address will not be published.


Your Email Address will not be published

Read More Articles
More from thefinance