The Assembly Place eyes portfolio expansion with IPO of 50.3 million shares at 23 cents each

SINGAPORE: Singapore-based community living operator The Assembly Place is looking to expand its portfolio using proceeds from its initial public offering (IPO) of about 50.3 million shares, including 48.3 million placement shares and two million public offer shares, priced at 23 cents each, ahead of its expected trading on the Singapore Exchange (SGX) Catalist board on Jan 23.

Cornerstone investors are expected to take up about 29.5 million shares, including Apricot Capital, Asdew Acquisitions, Cache Capital, ICH Synergrowth Fund, and Maybank Securities acting for certain high net worth clients, as well as Cheah Chi Kong, Johnathan and Deepak Lakhi Ramchandani.

The group expects to raise about S$18.3 million in gross proceeds from its invitation and cornerstone tranche.

Following the offering, TAP will have a share capital of about 383 million shares, giving the group a market capitalisation of approximately S$88.1 million at listing. 

The IPO is scheduled to close at 12pm on Jan 21, with trading expected to begin at 9am on Jan 23.

Net proceeds from the IPO will be used mainly to expand TAP’s portfolio and pursue co-investment opportunities with property asset owners, enabling the group to accelerate growth plans and strengthen its market position by accessing new brands, products, markets and customers, said executive director and chief executive officer Eugene Lim. 

Over the next two years, additional properties are expected to add around 610 keys to the group’s portfolio, including its 66-key property in Bangsar, Kuala Lumpur.

Looking ahead, the group aims to grow its portfolio to over 10,000 keys by 2030, with plans to expand its community-driven living model across Southeast Asia.

SAC Capital is the sponsor, issue manager, underwriter and placement agent for the IPO.

Tan Kian Tiong, partner and head of capital markets at SAC Capital, said the proposed listing comes as Singapore’s stock market is seeing stronger momentum and active liquidity, adding that TAP’s community-driven co-living approach, which contributed over 90% of the group’s revenue from FY2022 to FY2024, presents a timely opportunity to attract younger investors.

“We expect positive interest in the retail tranche of the proposed Invitation,” he said. /TISG

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