Soilbuild Business Space REIT

[felixleong]

wow closed at 0.715, many punters up lorry, rip and enjoy ya weekend ^^

[KopiKat]

Stabilising Action

25,000,000 @ $0.76 to $0.77

Looks like only in action at pre-open + 1st few mins. and then MIA for the rest of the day!

[lonewolf]

Stabilisating Action Day 1 (16 Aug)

25,000,000 units purchased at $0.76-$0.77

Total units purchased to date: 25,000,000
Total stabilising units left: 31,307,000

Goodness! 44% of bullets used up in a day. If it continued in this same way, DBS would used up all its bullets by next week.

[CityFarmer]

News report on the stock's performance today

Soilbuild Business Space REIT tanks on debut

SINGAPORE - Soilbuild Business Space REIT, whose assets include business parks and industrial properties in Singapore, tanked on its trading debut on Friday, amid fears or rising interest rates, Bloomberg News reported.

The shares dropped 8.3 per cent to S$0.715 at the close of trading in Singapore, compared with the IPO price of S$0.78 apiece. Mr Lim Chap Huat, co-founder of Soilbuild Group Holdings, the developer which partly owns the REIT, pledged to buy an additional 216.9 million units.

The REIT raised S$626.7 million, with the public offer of the IPO about 5.4 times subscribed, a company statement showed.

http://www.todayonline.com/business/soil...anks-debut

[KopiKat]

Mr Lim Chap Huat, co-founder of Soilbuild Group Holdings, the developer which partly owns the REIT, pledged to buy an additional 216.9 million units.

That equates to 27%. Together with his current 27%, that means 54%. Will he need to do a Mandatory G.O.?

[Nick]

Mr Lim Chap Huat, co-founder of Soilbuild Group Holdings, the developer which partly owns the REIT, pledged to buy an additional 216.9 million units.

That equates to 27%. Together with his current 27%, that means 54%. Will he need to do a Mandatory G.O.?

I thought that refers to the Sponsor units only ?

Prospectus

Concurrently with, but separate from the Offering, Mr Lim
Chap Huat has entered into a subscription agreement (the
“Subscription Agreement”) to subscribe for 216,936,999
Units (the “Subscription Units”, together with the Sponsor
Initial Unit, the “Relevant Units”) at the Offering Price
conditional upon the Underwriting Agreement having
been entered into, and not having been terminated,
pursuant to its terms on or prior to the Settlement Date
(as defined herein)......

Mr Lim Chap Huat and the Sponsor will together immediately after the
completion of the Offering, hold 216,937,000 Units (constituting 27.0% of the total number of Units
expected to be in issue) (assuming that the Over-Allotment Option is not exercised) or
160,630,000 (constituting 20.0% of the total number of Units expected to be in issue) (assuming
the Over-Allotment Option is exercised in full).

[KopiKat]

Mr Lim Chap Huat, co-founder of Soilbuild Group Holdings, the developer which partly owns the REIT, pledged to buy an additional 216.9 million units.

That equates to 27%. Together with his current 27%, that means 54%. Will he need to do a Mandatory G.O.?

I thought that refers to the Sponsor units only ?

Prospectus

Concurrently with, but separate from the Offering, Mr Lim
Chap Huat has entered into a subscription agreement (the
“Subscription Agreement”) to subscribe for 216,936,999
Units (the “Subscription Units”, together with the Sponsor
Initial Unit, the “Relevant Units”) at the Offering Price
conditional upon the Underwriting Agreement having
been entered into, and not having been terminated,
pursuant to its terms on or prior to the Settlement Date
(as defined herein)......

Mr Lim Chap Huat and the Sponsor will together immediately after the
completion of the Offering, hold 216,937,000 Units (constituting 27.0% of the total number of Units
expected to be in issue) (assuming that the Over-Allotment Option is not exercised) or
160,630,000 (constituting 20.0% of the total number of Units expected to be in issue) (assuming
the Over-Allotment Option is exercised in full).

The news article says additional.... I highlight in red above.
Nothing in SGX Annc on that. Perhaps the reporter made a mistake?

---

Found the Bloomberg news. Offending extract,

Lim Chap Huat, co-founder of Soilbuild Group Holdings Ltd., the developer which partly owns the REIT, pledged to buy an additional 216.9 million units, according to a preliminary prospectus.

The word 'prospectus' gives a link to MASNET which can't be accessed without a password. But, the link (I removed http so that it shows in full),

masnet.mas.gov.sg/opera/sdrprosp.nsf/e4607bcf096b71f748256b660010c4a4/5389FA953F9C1F7748257BB8000DF6BD/%24File/1.%20Soilbuild%20REIT%20Prelim%20Prosp%20(30%20Jul%202013).pdf

It looks like that of the prelim prospectus dated 30-Jul-13....

Conclusion : Sloppy reporting....

[Greenrookie]

Mr Lim Chap Huat, co-founder of Soilbuild Group Holdings, the developer which partly owns the REIT, pledged to buy an additional 216.9 million units.

That equates to 27%. Together with his current 27%, that means 54%. Will he need to do a Mandatory G.O.?

I thought that refers to the Sponsor units only ?

Prospectus

Concurrently with, but separate from the Offering, Mr Lim
Chap Huat has entered into a subscription agreement (the
“Subscription Agreement”) to subscribe for 216,936,999
Units (the “Subscription Units”, together with the Sponsor
Initial Unit, the “Relevant Units”) at the Offering Price
conditional upon the Underwriting Agreement having
been entered into, and not having been terminated,
pursuant to its terms on or prior to the Settlement Date
(as defined herein)......

Mr Lim Chap Huat and the Sponsor will together immediately after the
completion of the Offering, hold 216,937,000 Units (constituting 27.0% of the total number of Units
expected to be in issue) (assuming that the Over-Allotment Option is not exercised) or
160,630,000 (constituting 20.0% of the total number of Units expected to be in issue) (assuming
the Over-Allotment Option is exercised in full).

The news article says additional.... I highlight in red above.
Nothing in SGX Annc on that. Perhaps the reporter made a mistake?

---

Found the Bloomberg news. Offending extract,

Lim Chap Huat, co-founder of Soilbuild Group Holdings Ltd., the developer which partly owns the REIT, pledged to buy an additional 216.9 million units, according to a preliminary prospectus.

The word 'prospectus' gives a link to MASNET which can't be accessed without a password. But, the link (I removed http so that it shows in full),

masnet.mas.gov.sg/opera/sdrprosp.nsf/e4607bcf096b71f748256b660010c4a4/5389FA953F9C1F7748257BB8000DF6BD/%24File/1.%20Soilbuild%20REIT%20Prelim%20Prosp%20(30%20Jul%202013).pdf

It looks like that of the prelim prospectus dated 30-Jul-13....

Conclusion : Sloppy reporting....

Or Mr lim trying to pull a fast one?

[KopiKat]

Shorts on 16-Aug-13,

7,748,000 units @ $5,725,170 => Average Price per Unit = $0.739
Out of Vol = 137,487,000 => 5.635%

Hmm... no. of shorts is lower than I expected. That means most of the selling must have been done by those who got their allotment from the IPO! Further, the average price shorted is also lower than I expected. Not a lot of "meat" at current prices, unless it drops further next week. Hmm... must dream up some new hypothesis to test next week... Hee..

---

Found the Bloomberg news. Offending extract,

Lim Chap Huat, co-founder of Soilbuild Group Holdings Ltd., the developer which partly owns the REIT, pledged to buy an additional 216.9 million units, according to a preliminary prospectus.

The word 'prospectus' gives a link to MASNET which can't be accessed without a password. But, the link (I removed http so that it shows in full),

masnet.mas.gov.sg/opera/sdrprosp.nsf/e4607bcf096b71f748256b660010c4a4/5389FA953F9C1F7748257BB8000DF6BD/%24File/1.%20Soilbuild%20REIT%20Prelim%20Prosp%20(30%20Jul%202013).pdf

It looks like that of the prelim prospectus dated 30-Jul-13....

Conclusion : Sloppy reporting....

Or Mr lim trying to pull a fast one?

I stand by my conclusion that it's sloppy reporting by Bloomberg and now, the same news article is being carried by almost every news / magazine / blog / forum site I have read.... The TODAY article that's posted in this thread further truncated the 'prelim prospectus' part and made it seem even more 'real' that Mr Lim had pledged to subscribe for 'additional' units...

My reasoning is, why use the Prelim Prospectus when there's a Final Prospectus to quote Mr Lim as a "pledge" for "additional" units.

If I read the Final Prospectus correctly, the "additional" refers to the 216,936,999 'Subscription Units' on top of that 1 'Sponsor Unit' ie. in additional to this 1 unit. They termed it as a "pledge" for the 'Subscription Units' as it was conditional, extracts from IPO Final Prospectus,

Mr Lim Chap Huat has entered into the Subscription Agreement to subscribe for the Subscription Units at the Offering Price conditional upon the Underwriting Agreement having been entered into, and not having been terminated, pursuant to its terms on or prior to the Settlement Date.

I'd be most happy to be proven wrong as I'm now vested...

[wsreader]

Not a lot of "meat" at current prices, unless it drops further next week.

Those who bought contras on 16 Aug 13 will be squeezed when the price drop further on T+3. Maybe that's where the meat will come from?
Subana yield is within sight, I guess.