Eagle Hospitality Trust registers prospectus with MAS; to raise $620 mil from IPO
By: PC Lee
16/05/19, 08:04 pm
SINGAPORE (May 16): The trustee-managers of Eagle Hospitality Trust (EHT) have registered its prospectus with the Monetary Authority of Singapore in connection with the offering of 580.6 million stapled securities at the issue price of US$0.78 per stapled security to raise US$453 million ($620 million) in gross proceeds.
The offering of 580.6 million stapled securities comprises an international placement of 535.7 million stapled securities to investors, including institutional and other investors in Singapore; and an offering of 44.9 million stapled securities to the Singapore public.
Investors subscribing for stapled securities under the public offer will pay the offering price in Singapore dollars of $1.071.
EHT is a US hospitality specialist with an invested sponsor and a portfolio of full service hotels in the US markets. Its initial portfolio comprises 18 primarily freehold hotel properties located in the US, with a total of 5,420 rooms and an aggregate valuation of US$1.27 billion.
All but one of EHT’s hotels are branded by and operated under franchise agreements with the three largest global hotel franchisors – Marriott, Hilton and IHG.
Cornerstone investors including DBS Banks and Gold Pot Developments have entered into subscription agreements to subscribe for an aggregate of 144.9 million stapled securities, representing 16.7% of the total number of stapled securities in issue immediately after the listing.
EHT will distribute 100% of its annual distributable income for the period from the date of listing to the end of 2020, and thereafter, at least 90% of its annual distributable income.
Distributions will be made on a semi-annual basis, for each six-month period ending 30 June and 31 December.
Based on the offering price, this represents an annualised distribution yield of 8.2% for s019 and 8.4% for projection year 2020.
As a comparison with the recently IPO'ed ARA US HT, the ARA US HT was offered at an exchange rate of 1USD to 1.3668SGD whereas the Eagle HT is offered at a less favourable rate of 1USD to 1.3731SGD.
SGD based investors need to compute the yield they are getting accordingly.
Eagle Hospitality Trust to be included in the GPR/APREA Composite Index and GPR/APREA Composite REIT Index
• Constituent changes will become effective at the start of trading on 23 September 2019. • Index Inclusion is a tremendous opportunity for EHT to increase its exposure to a broader group of institutional investors.
(20-09-2019, 02:32 PM)cfa Wrote: The selling seems not over after IPO ? Is it because of this potential disaster from Queen Mary ship/hotel ?
Hope to have comments from buddies here .
(Just vested at 0.655 )
I have been trying to figure out the same. I held off from investing at higher prices due to this concern but the share price has dropped from 78 cents to 66 cents or 15%. What piques my interest at this level is not just the high forecast dividend yield (close to 10%) but also the fact that the Queen Mary was valued at USD 159MM out of a total portfolio valuation of USD 1,270MM or 12.5% of the portfolio. Hence , the share price decline assumes that the Queen Mary is worth zero IF you assume that the rest of the assets are still valued correctly. However, it is weird that this hospitality trust would IPO at 78 cents when the book value is 88 cents. To me, that sets off alarm bells. Why would the sponsors be so keen to offload these assets that they are willing to offer a significant discount to book ? It may be that this has now fallen into value territory but I am still scratching my head to get a better grip on what could be wrong with the business model to account for the IPO discount and poor share performance particularly given that the share price of the ARA hospitality trust has been reasonably stable
I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a small position into EAGLE HT today . Hope I was not wrong in making this decision.
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
(20-09-2019, 08:04 PM)cfa Wrote: I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a small position into EAGLE HT today . Hope I was not wrong in making this decision.
Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.
LES 232 AND 240 OF THE LISTING MANUAL Pursuant to Rules 232 and 240 of the Listing Manual of the SGX-ST, and to the best of the knowledge and belief of the Joint Bookrunners and Underwriters after having taken all reasonable steps and making all reasonable enquiries, the following persons have been allocated the following number of Stapled Securities:
Name of Stapled Securityholder Relationship Number of Stapled Securities allocated Circumstances giving rise to the interest Claydon Hill Investments Ltd
(1) Substantial Stapled Securityholder 141,440,000 Allocated under the Placement Tranche Compass Cove Assets Limited
(2) Substantial Stapled Securityholder 120,000,000 Allocated under the Placement Tranche Bounty Green Assets Ltd
(3) Associate of a Substantial Stapled Securityholder 28,300,000 Allocated under the Placement Tranche Qian Jianrong Substantial Stapled Securityholder
(4) 32,050,000 Allocated under the Placement Tranche Wealthy Fountain Holdings Inc
(5) Substantial Stapled Securityholder 38,461,000 Allocated under the Placement Tranche Tang Gordon @ Tang Yigang @ Tang Gordon and Celine Tang @ Chen Huaidan @ Celine Tang Substantial Stapled Securityholder 51,282,000 Allocated under the Placement Tranche Gold Pot Developments Limited Substantial Stapled Securityholder
(6) 12,820,000 Allocated under the Placement Tranche DBS Bank Ltd. Sole Financial Adviser and Issue Manager, Joint Global Coordinator, Joint Bookrunner and Underwriter 12,640,450 Underwriting of Public Offer as disclosed above Merrill Lynch (Singapore) Pte. Ltd. Joint Global Coordinator, Joint Bookrunner and Underwriter 4,297,753 Underwriting of Public Offer as disclosed above
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
(20-09-2019, 08:04 PM)cfa Wrote: I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a small position into EAGLE HT today . Hope I was not wrong in making this decision.
Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.
(20-09-2019, 02:32 PM)cfa Wrote: The selling seems not over after IPO ? Is it because of this potential disaster from Queen Mary ship/hotel ?
Hope to have comments from buddies here .
(Just vested at 0.655 )
I have been trying to figure out the same. I held off from investing at higher prices due to this concern but the share price has dropped from 78 cents to 66 cents or 15%. What piques my interest at this level is not just the high forecast dividend yield (close to 10%) but also the fact that the Queen Mary was valued at USD 159MM out of a total portfolio valuation of USD 1,270MM or 12.5% of the portfolio. Hence , the share price decline assumes that the Queen Mary is worth zero IF you assume that the rest of the assets are still valued correctly. However, it is weird that this hospitality trust would IPO at 78 cents when the book value is 88 cents. To me, that sets off alarm bells. Why would the sponsors be so keen to offload these assets that they are willing to offer a significant discount to book ? It may be that this has now fallen into value territory but I am still scratching my head to get a better grip on what could be wrong with the business model to account for the IPO discount and poor share performance particularly given that the share price of the ARA hospitality trust has been reasonably stable
(21-09-2019, 11:24 AM)Ray168 Wrote:
(20-09-2019, 09:39 PM)Shiyi Wrote:
(20-09-2019, 08:04 PM)cfa Wrote: I read from somewhere before , the sponsor actually wanted to IPO it at a higher price but reduced it to 78 cents owing to bad market sentiment during that time .
The queen Mary ship/hotel also comprise of a big piece of land next to the ship , so assume if the ship is totally worthless , the land next to it should worth something .
This enticed me to commit a small position into EAGLE HT today . Hope I was not wrong in making this decision.
Substantial shareholder Tong Jinquan sold 10 million shares at US$0.65.
That probably explains the drop of share price. But as to why he sold, it's anybody's guess.
He still holds close to 5% stake. The share price may not have seen its bottom if the selling continues.
Just sharing. SSH selling info.
They are SSHs , got their shares thru private placements but sold after IPO below IPO price , any reason ?
“risk comes from not knowing what you’re doing.”
I don’t look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.
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