There are many reasons why I will not be be applying for Eagle HTrust USD IPO.
- Ara HTrust USD made their debut on SGX about 2 weeks ago. It failed trade above the IPO price USS$0.88 since.
- There is a possibility that next month June, there may be a IPO for KBS Prime US Reit (Business Times, 1 May 2019). I cannot help but be cautious when there is a sudden 3 IPOs from US properties. Am I gullible enough to buy what american investors may not want?
- Recent IPOs from Cromwell, US Manulife, Keppel KBS, Frasers L&I, issued rights not long after their IPO debut. Their prices dropped significantly during their right issues. It may be more prudent to buy Eagle HTrust USD if they have a rights issue. Afterall, the gearing is already at 38%. It is unlikely they can acquire any more properties without raising equity.
- There is not enough information on their sponsor. Knowing what the sponsor stands for is important to me. My preference is to invest in Reits with a track record rising DPU.
Here are 4 good analysis from bloggers. Note that they are detailed and will be pretty long read!
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