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September 20, 2018

UK property firm pledges an improved IPO early next year

UK's St Paul's Property Trust plans to list its shares early next year after deferring the issue, earlier scheduled for this month.

 Chairman Patrick Walker expects recent volatilities in the equity markets and interest rates to stabilise in the first quarter of 2016.

 Erosion of stock values due to weakening of the shilling and a high interest regime, he said, were the reasons that largely influenced the decision to put off the public offering.

 “Feedback has suggested that our proposal is particularly attractive to a wider market and internationally, in that it provides investors with the opportunity to invest in a risk-averse, sterling-based property investment asset providing a progressive return on capital with an in-built hedge against currency fluctuation,” he said in a statement. “We will therefore be coming to the market in the New Year as a full IPO rather than the originally planned more narrow placement.”

 Walker said the proposed IPO was modified following enquiries from institutional and high-net worth investors who indicated preference for a stable and progressive tax-free dividend return.

 Ahead of planned Sh4 billion IPO, the firm has appointed Vincent Rague, a venture capitalist, to its board in October.

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