Mapletree Commercial Trust has set their price at $0.88 which is just above the mid-range of $0.84 to $0.91... Although it seems to be good news, I think it is otherwise. As I have mention previously, as long as the pricing is not at the top of the range, it shows that there is low demand at price $0.91 which is not good for MCT.
Relooking at this IPO, there is a selling point which is its net asset value. It is priced below its NAV and their loans are all unsecured which means that all their properties are unencumbered. This is a selling point because investors will not be worried whether the properties will be seized should something unexpected happen.
I won't be applying for this IPO because of its low yield. I am more concerned for portfolio repositioning and avoid too much diversification. I believe that I will have a chance to buy it at the same price after IPO.
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