Sunday, 21 July 2013

SPH REIT or OUE HT

It was a fun weekend. Thanks to Facebook readers who participated in the 'online' poll. The poll question was:



Thanks to the support, we have quite a few comments. 




Please become a friend if you want to participate in future polls and you can private message me on FaceBook as well. I will try to answer all messages whenever i can.

Back to the question on SPH REIT or OUE HT. My analysis as follows:



SPH REIT

The peer valuation indicate that upside for SPH REIT is limited as it was priced at the top end of the book-building range. However, this was a function of the overwhelming demand from institutions which resulted in a staggering 42x over subscription under current market conditions. As such, there could be spill-over demand from investors who were not allocated in full. In addition, the public tranche is quite decent and i think retail investors will want to participate given that SPH is a well known brand and you can see the advertisements on the REIT for the last few days. I think retail investors will probably be out in full force.

In this regard, in my view, if you want to flip SPH REIT, it is possible but you will need to a decent allocation of at least 5 lots to cover your commission. That means applying 20 lots or more at the ATM.

OUE REIT


Surprisingly we see the CEO saying leaving something on the table for investors. Based on my analysis above, that is quite true as it is slightly more attractive priced against its peers.

Again, in my view, if you want to flip OUE HT, it is possible but you will need to a decent allocation of at least 5 lots to cover your commission. That means applying 20 lots or more at the ATM.

What will Mr. IPO do?

Mr. IPO intends to apply for both IPOs and flip it but it will probably not be as profitable as KrisEnergy. 

Happy IPOing


11 comments:

Singaporean said...

OUE at 88 cents is attractively priced given a 7.2-7.5% projection. I got allocated 32 lots placement but don't intend to sell.

Mr. IPO said...

Excellent. As long as you know what you want. :)

Anonymous said...

How many lots do you intend to apply for SPH-R and OUE-HT?

Anonymous said...

As an anonymous reader, I benefited quite a bit from the writings of Mr ipo and I always expressed my gratitude when I read them.

Like some readers, I do seek out advice from Mr ipo from time to time. But, I do not think it is appropriate to ask Mr ipo personal questions of "how many lots do you intend to apply".... etc Becos these are very personal things and may be subjected to changes till the last minute..

MAN said...

Yeah man agree too, as a man one shld make self decision!

Anonymous said...

how do u get placement lots?

Anonymous said...

how do you get placement lots? +1

Mr. IPO said...

Refer to my posting on the top right "for newbies". How to lay hands on the placement shares. Ask from your broker.

Anonymous said...

The highly anticipated sph and uoe reit listing is finally here. Sph is a senior citizen stock. So am anticipating heavy buying for sph reit from the silver hair age group. Should cross $1.10 mark with buyers adopting buy and hold strategy. Prices should hold well!

josephine said...

Hi Mr IPO,

Where do I find div pay out period for OUE HTrust?

Your blog helps a lot.

Many thanks

Jo

Mr. IPO said...

You can find out from the prospectus lor

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