[SINGAPORE] Industrial property developer Soon Hock Enterprise debuted on the mainboard of the Singapore Exchange (SGX) on Thursday (Oct 16), and closed 0.9 per cent below its initial public offering (IPO) price of S$0.58.
It opened the day 8.6 per cent above its IPO price at S$0.63 and closed at S$0.575, with around 27.7 million shares transacted.
Soon Hock’s debut comes a day after the company announced that its IPO was 9.8 times subscribed. The offering was launched on Oct 8 and closed at 12 pm on Tuesday, comprising a total of 21.6 million shares on offer for S$0.58 a share.
This included a Singapore public offer of 2.8 million shares, which was 16.9 times subscribed by retail investors, and an international offering of 18.8 million shares that was 8.7 times subscribed.
Tan Min Loon, executive director and chief executive of Soon Hock, said on Thursday that the listing will position the company to “capitalise on the rising demand for modern, high-specification industrial properties that stems from Singapore’s leading position as a regional economic and logistics hub”.
He added that the IPO funds raised will enable the group to accelerate its growth plans, which include the acquisition of new land sites and buildings for development and redevelopment.
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On Wednesday, Tan said that part of the proceeds will go towards financing the cost of the group’s existing property development and redevelopment projects in the pipeline. These include its freehold industrial properties at 20 Shaw Road and 56, 58, 60 and 62 Senang Crescent.
Pol de Win, SGX head of global sales and origination, on Thursday noted that Singapore’s real estate sector “continues to attract strong investor interest”.
“This listing further reinforces SGX’s position as a preferred destination for companies seeking access to capital and long-term growth,” he said.
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Soon Hock specialises in industrial property development and investment in Singapore. It has delivered more than 1,200 strata-titled units across Singapore.
Its portfolio includes Polaris @ Woodlands, a Kaki Bukit development and a mixed-used development at Jalan Papan that features production units, a canteen, a minimart and a 300-bed worker dormitory.
