Accordia Golf Trust, which will be backed by golf courses in Japan, plunged on its first day of trading in Singapore, tracking declines in global stocks.
The units were 12 percent lower at 85 Singapore cents apiece at the close in the city-state, compared to the offer price of 97 Singapore cents. The trust offered 782 million units, it said in a filing to the Monetary Authority of Singapore on June 30. The trust raised S$759 million ($608 million) after offering a majority of the units to Japanese investors.
Asian stocks dropped today, extending a global selloff that erased this year’s gains in the Dow Jones Industrial Average and halted a five-month rally in world equities. Singapore’s Straits Times Index fell 0.9 percent.
“The subscription for this trust wasn’t too good so that set the stage for the declines,” Ryan Huang, Singapore-based market strategist at IG Ltd. said. “That coupled with the global sell-off was unfortunate timing for them.”
First-time share sales in Singapore have raised $945 million this year excluding Accordia, down from $4.3 billion the same period in 2013, data compiled by Bloomberg show. Frasers Hospitality Trust, which raised S$368 million in its IPO, has risen 1 percent since its trading debut last month.
At the IPO price, it will offer a yield, excluding some items, of 7 percent for the financial year ended March 2015, according to the company’s prospectus.
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.