Elite Commercial REIT IPO – Balloting Results

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So the balloting results for Elite Commercial Trust are out. The SGX announcement is here, and I’ve extracted the key bits below (emphasis mine).

The public offer was 8.3 times subscribed:

Based on the 5,734,300 Units available to the public for subscription, excluding applications by connected persons and persons mentioned in Rule 240 of the Listing Manual, the Singapore Public Offer was approximately 8.3 times subscribed.

While the overall offer was 3.4 times subscribed:

Based on the 114,686,200 Units available for subscription under the Offering, and excluding applications by connected persons and persons mentioned in Rule 240 of the Listing Manual, the Offering was approximately 3.4 times subscribed (based on the indications of interest, valid acceptances and valid applications for the Units).

Allocation for the public tranche is as follows:

There’s no doubt that the offer was a small one, but given all that is going on with the global economy and the Wuhan Coronavirus, I thought this was actually a pretty decent showing from the Elite Commercial REIT IPO.

Seems like retail investors are pretty rational after all! Sound underlying cash flow with long term visibility, at a 7.1% yield, and most investors are going to buy regardless of what virus is going around.

Trading is expected to commence at 2.00 pm tomorrow (Thursday, 6 February 2020).

With this IPO showing, I don’t think we’ll see that much volatility on day one, but who knows.

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