Thursday, October 21, 2010

Mapletree Industrial Trust

Mapletree Industrial Trust likely to surge on debut as stellar performance of GLP on Mon, +9.7% vs IPO price, shows huge appetite for listings with backing of Spore govt. MIT could fare better today with offer 37.9X subscribed (vs GLP's 12X), priced at yield of 8%, well above peer Ascendas 6.5%. Apart from attractive yield, catalyst could come from conversion of 22 flatted factory clusters into business parks, which command much better rentals.

Secondly, MIT is backed by Mapletree Investments, a pedigree brand name. Offer could raise up to $1.19b if overallotment option exercised; proceeds to buy 6 properties in Spore, repay debt. Note sister coy Mapletree Logistics +4% to $0.92 this morning, riding on the positive vibes of MIT’s IPO.

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