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Digital Core REIT Set To Raise $600m in Singapore IPO

Digital Core REIT, sponsored by US-listed Digital Realty Trust, is set to raise $600 million in an initial public offering in Singapore, the largest listing in the city-state this year


Singapore
The focus on S-Reits comes as interest rates look set to rise globally. Photo: Reuters.

 

Digital Core REIT, sponsored by US-listed Digital Realty Trust, is set to raise $600 million in an initial public offering (IPO) in Singapore, the largest listing in the city-state this year, the company said in its prospectus on Monday.

The Real Estate Investment Trust (REIT), which owns 10 freehold data centres in the United States and Canada worth around $1.4 billion, is issuing 682 million units at $0.88 per a piece, excluding a greenshoe option worth $47 million.

The offering is more than double the total raised so far this year in Singapore at $258.9 million, yet still ranking behind neighbours such as Thailand, Indonesia and the Philippines, data by Refinitiv showed.

The city-state is on track for its weakest showing of IPOs and secondary listings since 2015 if the Digital Core REIT issue goes ahead, according to the data.

 

Reuters

 

 

Blackrock Inc, Eastspring Investments, Fullerton Fund Management and AIA Investment Management are among the cornerstone investors in the IPO. Cornerstone investors are buying shares worth $365 million, or 61% of the total offer.

Shares totalling $223 million are being placed to other institutions, while the retail component, around $12 million, opens on Monday.

The REIT will list on Monday December 6.

BofA Securities, Citigroup and DBS Group are joint bookrunners for the IPO.

 

• Reuters with additional editing by Jim Pollard

 

 

 

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Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd papers in Sydney, Perth, London and Melbourne before travelling through SE Asia in the late 90s. He was a senior editor at The Nation for 17+ years.