IPO Price = $0.80
OUE is going to launch another REIT call OUE Commercial REIT. It comprises of two properties, one in Singapore and another in Shanghai. It has fixed their price at $0.80 which allows analysis to take place. Here are the statistics.
One very attractive component is its price-to-book ratio which is at a low of 0.752. However, it is actually comparable to some of its peers like FCOT (0.788), and Suntec REIT (0.726). Its yield is also comparable to FCOT which is at 6.55%. Suntec REIT is at 5.95% but there is a potential upside for it. With such information and some of its comparables, I would say that it is fairly valued only.
They have cleverly priced it first unlike the previous issue where they have an indicative range and priced it later. Thus for us retail investors, it is difficult to gauge the demand. We will need to rely on news reports which may not really tell us the full story.
I am still considering whether to enter because my portfolio is in a need of rebalancing. It seems that I am likely to apply for it, looking at the statistics but it is not really a "must" because there are other comparables.