Carlyle-Backed New Century REIT to Cut HK IPO by at Least Half – IFR

(Reuters) – New Century Real Estate Investment Trust, the owner of four five-star hotels in mainland China, plans to slash its Hong Kong initial public offering by at least 50 percent because of tepid demand for new listings in the city, IFR reported on Thursday, citing sources with knowledge of the deal.

The company, backed by private equity firm Carlyle Group, has not decided yet on the new number of shares it will offer, but the final size of the IPO will be at least half the up to $254 million originally planned, added IFR, a Thomson Reuters publication.

New Century will sell shares at the same original indicative range of HK$3.5-$4.2 per unit, putting the yield of the REIT at up to 9.1 percent, IFR added.

Morgan Stanley and Standard Chartered Plc were hired as joint global coordinators of the IPO.