Here is a possible big booster for SPH REIT's IPO

Despite the gloomy outlook in the market.

According to Maybank Kim Eng, after the offering (without the over-allotment option exercising), SPH, NTUC and the cornerstone investors will own 72.2/5.4/10.0% of total outstanding units while free float only accounts for the remaining 12.4%. 

Limited free float could help a successful IPO despite the recent market uncertainty. They expect the IPO process to finish by August, slightly later than management’s original plan.

Here's more from Maybank Kim Eng:

The listing will hope to raise between $476 million and $504 million, with an offer of 308.884m units to public and 251m units to cornerstone investors, at between SGD85-90cents/unit. The offer price represents a 0.9% premium to NAV per share.

FY13 DPU yield is expected to be 5.58% @90cents and 5.79% @85cents. The offer price is reasonable and comparable to peers in our view.