Huge bid for Far East IPO leads to ‘brutal’ allocations

15 Aug 2012

Far East Hospitality Trust priced its Singapore IPO this week, raising S$626m ($501.77m) after selling shares at the top of the price range, making it the city-state's largest IPO so far this year, writes Louisa Burwood-Taylor.

The deal got such strong demand — the institutional book was 30 times oversubscribed — that over 35% of accounts were allocated nothing, according to a banker close to the deal.

Over 200 investors came into the book with $8bn worth of orders, but with just S$250m worth of ...

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