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Shares of UI Boustead REIT declined on their debut on the Singapore Exchange, opening below the IPO price despite strong investor interest during the offering stage. The industrial and logistics real estate investment trust raised about SGD 973.6 million, equivalent to roughly USD 763.49 million, making it Singapore's largest IPO so far this year and the biggest REIT listing since mid-2025. The trust owns 23 properties valued at around SGD 1.9 billion across Singapore and Japan. Key tenants include GlaxoSmithKline and Razer. Market weakness and a slightly softer benchmark index contributed to the subdued trading debut.
Shares of UI Boustead REIT made a weak debut on the Singapore Exchange, opening at SGD 0.805 per share, lower than the IPO issue price of SGD 0.88. The listing marked the first real estate investment trust and mainboard IPO on the exchange this year and also the largest listing in Singapore so far this year. Advertisement
The trust raised about SGD 973.6 million, equivalent to around USD 763.49 million, through the public offering. The figure assumed that the over-allotment option associated with the IPO had not been exercised. Despite the scale of the offering and investor participation, trading started below the issue price amid slightly weaker market conditions.
Within the first few minutes of trading, the REIT's units were changing hands at around SGD 0.82 on the exchange, still below the listing price. At the same time, Singapore's benchmark equity index, the Straits Times Index, was down by about 0.5%, reflecting cautious sentiment in the broader market.
The proceeds raised from the IPO are planned to be used mainly for property acquisitions. A portion of the funds will also go towards paying refundable consumption tax, covering issue-related expenses and transaction costs. The remaining amount will be used for working capital requirements and strengthening the REIT's cash reserves.
UI Boustead REIT's portfolio includes 23 industrial and logistics assets with a combined valuation of around SGD 1.9 billion. Out of these, 21 leasehold properties are located in Singapore, while two freehold assets are situated in Japan. The portfolio mainly comprises industrial facilities, business parks and logistics properties that cater to multinational companies and technology-focused tenants.
Major occupiers include global pharmaceutical company GlaxoSmithKline and Singapore-based technology firm Razer. The REIT's top 10 tenants together contribute approximately 54% of its net property income, indicating a portfolio supported by established corporate occupiers.
Jingkai Yew, head of Southeast Asia equity capital markets at Citi, indicated that investors had been drawn to the IPO because of the quality of the assets and the REIT's growth prospects. He added that the listing also highlighted Singapore's strength as a global centre for REIT listings and its ability to attract institutional capital from international investors.
The IPO was supported by several financial institutions. DBS Bank and United Overseas Bank acted as joint issue managers, while DBS, UOB and Citi served as joint global coordinators. The group of joint bookrunners and underwriters included DBS, UOB, Citi, CGS International, Goldman Sachs and Maybank.
Singapore has long been a major hub for real estate investment trust listings in Asia, with a well-established regulatory framework and a strong institutional investor base. The exchange currently hosts multiple REITs across sectors such as industrial properties, retail, offices and data centres.
In recent months, the Singapore Exchange has also seen growing interest from potential issuers. This follows several steps taken by the government and the exchange to strengthen the equities market and improve listing activity.
Source Reuters
5th Jun, 2025
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