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RAM Essential Services ready to print $356.9m IPO

The article originally appeared in Australian Financial Review.

Bookrunners Credit Suisse and UBS are set to rule off a $356.9 million initial public offering for property owner RAM Essential Services Property Fund.

It is understood the brokers told investors the bookbuild would close at 4.30pm on Wednesday, and the deal would be underwritten on Wednesday night.

The IPO would see it raise $356.9 million at $1 a security, which implied a 5.7 per cent distribution yield based on FY22 forecasts.

RAM Essential Services Property Fund was expected to lodge its prospectus with the corporate regulator on Thursday and list with a $521.1 million market capitalisation in late October.

RAM Essential Services Property Fund is the second biggest real estate IPO of the year.

The fund would own 33 properties on listing, including sites leased to private hospitals group Healthecare and supermarket chains Woolworths and Coles, with a $706.3 million portfolio value as at August 31.

Funds raised at the IPO would be used to repay some existing investors ($150.2 million), acquire additional properties ($122 million), pay transaction costs ($24.5 million) and repay existing bank debt ($60.2 million), according to documents sent to potential investors a fortnight ago.

Credit Suisse and UBS were underwriters and joint lead managers, alongside Ord Minnett and E&P Corporate Advisory.