Alloted @ $0.88.
Applied for 3 accounts (M-in-law also) and all got alloted! Looking at the balloting, very generous. 6.9x subscribed for Public Offer. 73,403,000 shares for stabilising action for 30 days. Listing on 27-Jul (Fri) 2pm. 😀
Am planning to hold for the Yield + Blind faith in Ascendas (JTC). But, will consider to sell if Yield drops below 7%. If share price drops, then likely buy more to collect. Note that their Hotels are mostly in Australia, with 2 (1 to be acquired after IPO) in Beijing and another in Japan. Mostly 3-4 stars hotels.
The closest comparable is CDL H-Trust where at $2.05, Yield = 5.454% ; Gearing = 25.6% ; NAV = $1.58. But, Hotels are mostly in Singapore (lower FOREX risk when include overseas hotels) and of a higher class.
For reference, A-HTrust @ $0.88, Yield = 8% (FY14) ; Gearing = 34.3% (37.6% after acquisition of Beijing SanYuan is completed post-IPO) ; NAV = $0.814. FY13 DPU = 4.61ct incl. 0.61ct from waiver of sponsor's entitlement which raised Annualised Yield to 7.741% (Prospectus put as 7.9%). So, High FOREX risk and little debt headroom (high Gearing) for yield accretive acquisition. Also, Ascendas record is +ve for A-REIT (Industrial Assets) but -ve for a-iTrust (India Assets).
From Phillip report,
