Sunday, May 19, 2013

Asian Pay TV Trust IPO part 2

The pricing for the IPO has been finalized to be $0.97. With this price, the yields work out to be as follows:

In this yield hungry environment, we could see APTT rising on the first day. A recent example was the Croesus Retail Trust (CRT). CRT IPOed at a price of $0.93 for a projected yield of 7.96%. On the 1st day of listing, it closed at $1.145. This is an 23% increase! At this price, it also translate to a yield of 6.46%.

If we were to see a similar yield compression for APTT,
a yield of 7% will result in a price of $1.04 (up 7.2% from IPO price)
a yield of 6.5% will result in a price of $1.12 (up 15.5% from IPO price)

The IPO will close on 27th May 2013 at 12pm. It will then list on 29th May 2013 2pm.
Good luck to those who are applying!

Related post:
Asian Pay TV Trust IPO
APTT offering price and MIIF APTT Units

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