What happened?
The Astrea 8 PE Bond allocation result is finally out.
Since this morning, there has been a lot of chatter in the Beansprout community about the allocation for the Astrea 8 PE Bond.
Some investors were sharing the refund they were getting in the DBS, UOB or OCBC accounts, which provided an indication of how much allocation they were getting.
It then became clear that the allocation for Astrea 8 Class A-1 Bonds largely met investor expectations, while allocation for the Astrea 8 Class A-2 Bonds was lower than what many expected.
This was confirmed by the allocation result that just came out.
Let us dive deeper to find out more about the allocation of the Astrea 8 bonds.
What we learnt from the Astrea 8 Bonds allocation result
Allocation of Astrea 8 Class A-1 Bonds
Based on the balloting ratio of 1:1, all valid applicants who applied for less than S$50,000 of Class A-1 Bonds received allocations either in full or in part.
Investors who applied for S$9,000 and below of Class A-1 Bonds received full allocation.
Investors who applied for S$10,000 to S$29,000 of Class A-1 Bonds received S$9,000 allocation.
Investors who applied for S$30,000 to S$49,000 of Class A-1 Bonds received S$10,000 allocation.
Balloting was conducted for investors who applied for S$50,000 or more of Class A-1 Bonds.
In total, there were valid applications of over S$763 million for the Class A-1 Bonds from a total of 27,287 applicants.
This represents a subscription rate of 2.9x based on the public offer of S$260 million for the Class A-1 bonds.
Allocation of Astrea 8 Class A-2 Bonds
Based on the balloting ratio of 1:1, all valid applicants who applied for less than US$50,000 of Class A-2 Bonds received allocations either in full or in part.
Investors who applied for US$4,000 and below of Class A-2 Bonds received full allocation.
Investors who applied for US$5,000 to US$9,000 of Class A-2 Bonds received S$4,000 allocation.
Investors who applied for US$10,000 to S$29,000 of Class A-2 Bonds received US$5,000 allocation.
Balloting was conducted for investors who applied for US$50,000 or more of Class A-2 Bonds.
In total, there were valid applications of over US$193 million for the Class A-2 Bonds from a total of 9,894 applicants.
This represents a subscription rate of 3.9x based on the public offer of US$50 million for the Class A-2 bonds.
How is the Astrea 8 Bonds Allocation different from the Astrea 7 Bond Allocation?
Let us now compare the allocation of the Astrea 8 Bonds with the allocation of the Astrea 7 Bonds.
There were S$877 million applications by 30,565 applicants for public offer of the Astrea 7 Class A-1 bonds.
Based on the S$280 million of the Class A-1 bonds in the public offer, this would represent a subscription rate of 3.1x.
From the comparison, there appears to be a slight dip in demand for the Astrea 8 Class A-1 bonds compared to the Astrea 7 Class A-1 bonds.
| Astrea 7 Class A-1 | Astrea 8 Class A-1 | |
|---|---|---|
| Number of applicants | 30,565 | 27,287 |
| Total applications (S$ million) | 877 | 763 |
| Subscription rate | 3.1x | 2.9x |
However, like the Astrea 7 Class A-1 bonds, Investors who applied for S$9,000 and below of Astrea 8 Class A-1 Bonds received full allocation.
Let us now compare the allocation for Astrea 8 Class A-2 bonds with the allocation for Astrea 7 Class B bonds.
Note that there was no public offer for the Astrea 7 Class A-2 bonds.
There were US$126 million applications by 7,059 applicants for public offer of the Astrea 7 Class B bonds.
Based on the US$100 million of the Class B bonds in the public offer, this would represent a subscription rate of 1.3x.
From the comparison, there appears to be more demand for the Astrea 8 Class A-2 bonds compared to the Astrea 7 Class B bonds.
| Astrea 7 Class B | Astrea 8 Class A-2 | |
|---|---|---|
| Number of applicants | 7,059 | 9,894 |
| Total applications (US$ million) | 126 | 193 |
| Subscription rate | 1.3X | 3.9x |
With the higher demand for the US dollar denominated Astrea bonds, allocation for the Astrea 8 Class A-2 bonds was lower than for the Astrea 7 Class B bonds.
Balloting was also conducted for investors who applied for US$50,000 or more of Astrea 8 Class A-2 Bonds, whereas all valid applicants who applied for the Astrea 7 Class B Bonds received allocations either in full or in part.
Listing of the Astrea 8 PE bonds
The Astrea 8 Class A-1 Bonds and Class A-2 Bonds will start trading on the SGX at 9am on 22 July 2024 (Monday)
The Class A-1 Bonds will trade under the trading name “Astrea8A1 4.35%390719” with SGX stock code “Z1AB”, in board lot sizes of S$1,000.
The Class A-2 Bonds will trade under the trading name “Astrea8A2 6.35%390719” with SGX stock code “Z2AB”, in board lot sizes of US$1,000.
Once trading starts, you may buy or sell the bonds on the SGX at the prevailing market price.
To learn more about the Astrea 8 PE bonds, you can read our detailed analysis on the Astrea 8 PE bonds here.
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