CapitaMalls Asia Limited Retail Bonds – Allotment and first day trading

Due to strong interest in the latest CapitaMalls Asia (CMA) retail bonds, CMA doubled the total bond size to $400 million consisting of two tranches:
a)   Public offer tranche of $220 million
b)   Placement tranche of $180 million

For the public offer tranche, it was 4.65 times subscribed (over the initial $100 million on offer). The placement tranche was more than 2 times subscribed over the initial $100 million on offer).

Allocation of Public Offer Tranche

Because there are more application money than the amount of bonds on offer, not all applicants were allocated the full amount they wanted. CMA allocate the full amount applied for applicants applying $2,000  to $5,000. Small time investors were given opportunities to own the bonds. All other applicants applying $6,000 to more than $2 million were allocated partial amounts requested for. For example, applicants for $10,000 were only allocated $6,000. Applicants applying for $1,000,000 were only allocated $365,000.

This way, CMA spreads out successful applicants to more retail investors rather than restrict to few rich individuals. It also allows more players to trade the bonds on the Singapore Exchange.

First Day Trading of Bonds

CMA bond make its debut today on the Singapore Exchange. The lowest price traded was $1.004 and the highest was $1.008 before settling at $1.006 at the close. Total volume traded was 4,052,000 units Price traded was above the IPO price of $1.000.

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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