Thursday, May 19, 2016

Manulife Reit IPO Balloting Results

Manulife Reit balloting results just came out in late evening which I thought I will just update here.

If you would like to see my earlier analysis on the IPO, you can view here.

The Placement tranche of 350,782,200 units were oversubscribed and 45,787,100 units for the public offer were 1.6x oversubscribed. This actually pales in comparison with the previous other reits IPO sch as BHG Reit and Ireit which was 7.6x and 7.5x oversubcribed respectively.

If we analyse the breakdown below, you would see that the chances of getting the subscription is actually pretty high. 

For instance, if you bid anywhere between 10,000 to 19,900 shares, your chances are 60% (30/50) of getting allocated 10,000 shares. If you bid between 20,000 to 49,900, your chances are even higher at 70% (35/50) of getting allocated 20,000 shares. I was not expecting this much allocation actually after thinking of bidding it myself but decide to pull out last minute due to limited funds. I think this should be interesting tomorrow when it started trading at 2pm and given how the market reacts today, there should be more dumping ahead, especially when there are no support.


  1. B,

    i bidded for 10k, but got none. .haha..
    even though probability is quite high for this range..
    never had much luck when it comes to such things.

    1. seems like it turned out to be a blessing in disguise.
      dropped on opening.

      come to think of it, if Fed is due to increase its IR some time this year. that will be detrimental to Reits, and especially so, manulife US reits.
      seems like there is potential for this counter to drop to 0.60.

    2. I seriously questioned why they Manulife wanted to tap on Singapore market REIT?

      Maybe because it is less easy for Singaporeans to monitor a faraway REIT?

      Ok....just my comments. In stocks, whether you are right or wrong, does not mean the stock price go in your favour!

  2. Hi B, I Skipped this IPO. Read more on my reasons in my latest post.