UNITS in Eagle Hospitality Trust tumbled below their initial public offering price of US$0.78 to hit a low of US$0.735 as at 3.06pm on Friday, when it made its debut on the mainboard of the Singapore Exchange .amid market volatility, resulting in the joint bookrunners and underwriters having to take up the bulk of its unsubscribed stapled securities.
"I think that market volatility and dipping sentiment among investors could have been a reason behind why the public tranche was not filled," a trader toldThe counter debuted on the Singapore Exchange at US$0.78 at 2pm on Friday, and was trading within a price range of US$0.735 to US$0.78 during the afternoon. Some 15.3 million shares exchanged hands, making it one of the most heavily traded counters on the Singapore bourse by mid-afternoon.
One market analyst noted that while the EHT's public offer being undersubscribed is"quite a disappointing outcome", this was not entirely unexpected, due to the close proximity in timing of ARA Hospitality Trust's IPO launch, and fatigue by the market and investors, given that both IPOs are so close to each other.
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