#Ascendas Hospitality Trust postpones launch of Singapore IPO
Ascendas Hospitality Trust has decided not to launch its initial public offering in Singapore due to the challenging market conditions, but will remain flexible about the timing of the deal.
The trust was aiming to raise between $600 million and $700 million, and after starting pre-marketing earlier had been expected to kick off a formal institutional road show. Ascendas Hospitality Trust owns hotels in Australia and several Asian markets, including China and Japan.
Singapore’s FTSE Straits Times Index has dropped 6.8% since May 2 amid persistent worries about the eurozone debt crisis and signs of slowing economic growth in China.
A number of other listing candidates have also struggled in the precarious market environment. Earlier this week, China Yongda Automobiles Services Holdings was forced to cancel its Hong Kong IPO of between $306 million and $435 million after its comps fell sharply, causing investors to abandon the deal. And within the property sector, M&L Hospitality Trusts (M&L Trusts) decided not to proceed with its Singapore IPO due to disappointing demand.
Ascendas Hospitality Trust doesn’t own any properties in Singapore, but owns cross-border assets, which historically have been a tough sell in Asia — partly because some investors find it difficult to fit them into their portfolios and partly because currency fluctuations make them more difficult to value. Given the currency volatility in recent months, this may have put investors off.
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