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. 

https://www.facebook.com/SingaporeIPOs

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