http://sgxreports.blogspot.sg/2012/06/perennial-china-retail-trust.html

Business Times - 11 Jun 2011

HOT STOCKS
Perennial China still 10.7% below IPO price

Retail trust makes feeble 1-1/2 cents gain to 62.5 cents on second day of listing

By JAMIE LEE

PERENNIAL China Retail Trust (PCRT) made barely a ripple on its second day of trading yesterday, recovering one-and-a-half cents to close at 62.5 cents but still 10.7 per cent lower than its IPO price of 70 cents.

The IPO - which was 1.6 times subscribed - was the company's second go at the public offering after its first offer price of $1 per unit failed to whet investors' appetite during a time of market volatility.

PCRT raised some $776 million from its listing.

The IPO price of 70 cents per unit was also at the bottom of the indicative range of 70-76 cents, with Pua Seck Guan, CEO of PCRT's trustee-manager, saying in May that the company had attracted a stronger book at the lower range and wanted to 'leave a few cents on the table' for investors to reap better returns.

Analysts' response to the stock has been lukewarm, noting that the stock's yield of about 5 per cent would pale in comparison to the other S-Reits currently available in the market.

PCRT joins the other poor IPO performers this year that had succumbed to market dreariness.

Hutchison Port Holdings Trust - which was launched in the aftermath of the devastating earthquake and tsunami events in Japan - closed yesterday down two US cents to finish at 84 US cents, or 16.8 per cent under its IPO price of US$1.01.

The IPO, which is Singapore's largest at US$5.45 billion, had failed to win over local investors, who had reservations about the weak greenback against the Singapore dollar. Distribution from the trust will be paid out in HK dollars, which is pegged to the faltering US dollar - which means forex losses if the Singapore dollar keeps strengthening.

Mapletree Commercial Trust, which delayed its IPO for about a month, closed yesterday at 87 cents, up half-a-cent, and still 1.1 per cent shy of its IPO price of 88 cents.

Harry's Holdings had its last traded price at 14.5 cents, 34 per cent below its offer price of 22 cents.

The exception among this year's IPO is still Dyna-Mac Holdings, which has Keppel Corporation as a shareholder. Its shares closed unchanged yesterday at 54 cents, or some 54.3 per cent higher than its IPO price of 35 cents.