Tuesday, August 28, 2012

Far East Hospitality Debut - Above Expectations

Far East Hospitality Trust listed on SGX mainboard on 27th Aug, 1 day ago, to a end day closing price of S$0.95. That represented a jump of 2cents from its IPO offer price. The 'pop' was also quite considerable considering that it reached a high of 0.98 before closing at 0.95. Today, the stock saw further buying pressure to close at $0.975 with a high of $0.98. That represents a 4.83% gain from IPO offer price of $0.93

Pretty impressive debut for a REIT-styled counter factoring into consideration that its IPO was priced on the top of the indicative range offered to the institutional tranche of $0.93, citing strong institutional and then, later, retail demand. Clearly, its Singapore-based hotel assets are a plus in gaining popularity with local investors.

Of course, the question is how did FEHT compare with the Ascendas Hospitality Trust? Both were marketed and packaged as stapled business trust and reit securities and the IPO response should give us a good picture to their future prospects and more importantly, as I always mention, market validation of their future earnings. On a side note, this comparison also value-adds to itself given the proximity of listing dates (exactly 1 month from each other) and almost similar market conditions (declining uptrend). 

The results of the comparison speaks for itself in the table below.

Of course, this is not the end to the comparisons of all IPOs in this year. Head over to "IPO SG Statistics" for a complete story of all IPO listings on the SGX this year.

No comments:

Related Posts Plugin for WordPress, Blogger...