OUE Hospitality Trust flat in trading debut

SINGAPORE — OUE Hospitality Trust (OUE H-Trust) closed unchanged on its first day of trading in Singapore, a somewhat disappointing start after SPH REIT clocked a 9 per cent gain on its debut a day earlier.

OUE H-Trust had opened at S$0.885 at 2 pm, 0.6 per cent above its initial public offering price of S$0.88 apiece.

The counter closed unchanged after reaching an intraday high of S$0.89, with more than 80 million stapled securities changing hands.

The Straits Times Index closed down 1.2 per cent.

Overseas Union Enterprise, which controls more than 40 per cent of OUE H-Trust, had raised S$600 million in an initial public offering of the trust after pricing units at the bottom of its indicative range.

OUE H-Trust’s assets comprise the five-star Mandarin Orchard hotel and adjoining mall.

“We will build on the success of the listing and strive towards achieving long-term growth in distributions and net asset value, while maintaining an appropriate capital structure,” said Mr Chong Kee Hiong, Chief Executive Officer of the REIT manager.