Accordia Golf Trust (AGT), which will be backed by golf courses in Japan, is poised to raise S$759 million ($612 million) in a Singapore initial public offering, people with knowledge of the matter said.
The business trust plans to price its sale at 97 Singapore cents per unit, the low end of a marketed range that went as high as S$1, the people said. At that price, it will offer a yield excluding some items of 7 percent for the financial year ended March 2015, according to the people, who asked not to be identified as the information is private.
First-time share sales in Singapore have raised $945 million this year, down from $4.3 billion the same period in 2013, data compiled by Bloomberg show. Frasers Hospitality Trust (FHT), which raised S$368 million in its IPO, has risen 2.3 percent since its trading debut earlier this month.
Tokyo-based Accordia Golf Co., which is selling 89 golf courses to the trust, will hold a 29 percent stake in Accordia Golf Trust after listing, according to terms for the deal obtained earlier by Bloomberg News.
Accordia plans to sell units to Japanese investors next week, accounting for about 74 percent of the offering, and start trading on Aug. 1, the terms show. Citigroup Inc. and Daiwa Securities Group Inc. are managing the offer.
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