Propertylink IPO prices at 89c

Propertylink CEO Stuart Dawes (left) and Vice Chairman Stephen Day in their Sydney offices. Picture: James Croucher.

Propertylink’s IPO has priced at 89c, equating to a forecast distribution yield of 7.7 per cent, as first reported by The Australian.

Credit Suisse, JPMorgan and Goldman Sachs recently confirmed valuation, which marks a slight increase from land slightly above the bottom end of the range.

The books on Propertylink’s $502m to $511.6m equity raise closed at 2pm.

Investors were asked to bid up in set increments, ranging from 75c to $1.49 — a wide price range that denotes a forecast distribution yield of 7.8 to 7.3 per cent.

It is understood the joint lead managers to the deal guided investors to the 89c price point or above, signalling books are covered at the lowest end of the valuation range.

While Propertylink, a landlord and asset management business, has drummed up interest from fund managers in New Zealand, Hong Kong and Singapore, with institutions in the latter city lured by the relatively high yield, a large Australian institution has also taken a hefty stake, sources said. In total, there were over 70 names in the book.