Digital CORE REIT IPO meets strong demand, with trading debut set for Monday

Digital Core REIT's property at 44520 Hastings Drive (ACC3) in Northern Virginia in the U.S. Credit: Digital Core REITDigital Core REIT's property at 44520 Hastings Drive (ACC3) in Northern Virginia in the U.S. Credit: Digital Core REIT

Digital CORE REIT‘s initial public offering (IPO) met with strong demand, with the total 267.03 million units available under the offering 19.4 times subscribed, according to the REIT’s balloting announcement filed to SGX Friday.

Trading is expected to begin at 2:00 p.m. SGT on Monday.

The REIT, which will invest in data center assets and assets used to support the digital economy, expected to raise gross proceeds of around US$977 million, according to the prospectus.

On Friday, the filing said the 13.35 million-unit Singapore public offer was around 16.1 times oversubscribed, while the 253.68 million units offered under the placement tranche were around 19.6 times subscribed.

SeaTown Master Fund, managed by SeaTown Holdings International, both of which are indirect wholl y owned subsidiaries of Singapore state-owned investment company Temasek Holdings, acquired 2.5 million units in the placement tranche, the filing said.

In addition, Fullerton Fund Management, a subsidiary of Temasek, was allocated 3.3 million units under the placement tranche, the filing said.

Lion Global Investors, a subsidiary of OCBC, which is a co-manager of the IPO, was allocated 10 million units under the placement tranche, the filing said.

DBS Bank Treasury Investments, part of DBS group, which is one of the IPO’s managers, was allocated 2.2 million units in the placement tranche, the filing said.

Tan Jeh Wuan, a director of the REIT’s manager, was allocated 300,000 units in the placement tranche, the filing said.

Tsui Kai Chong, a director of the REIT’s manager, and Great Eastern, a subsidiary of OCBC, a co-manager of the offering, applied for units in the Singapore public offer, the filing said. Tsui will not be allocated more than 7,000 units and Great Eastern’s allocation won’t exceed 15,800, the filing said.