first-ship-lease-trust-prices-ipo-slightly-off-the-top

First Ship Lease Trust prices IPO slightly off the top

The ship financing company's 8.69% yield helps attract investors to the $333 million offering as equity markets remain volatile.
First Ship Lease Trust, SingaporeÆs second business trust with a focus on the shipping industry, has priced its initial public offering at $0.98 for a total deal size of $333.2 million.

The final price, which was two US cents below the top of the indicated range, translates into a tax free annualised 2007 yield of 8.69% and a premium to net asset value of 5.4%.

The maritime financing company, which buys ships from various shipping operators and then leases them back through long-term contracts, was said to have attracted decent demand despite the current volatile markets with between 70 and 80 investors in the book. However, given that the company is a yield play with...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222