Oriental Red Tunnel REIT pricing range 4.012-4.700 yuan, total units 1 billion shares

Securities News: On March 19, Dongfanghong Tunnel Co., Ltd. Highway Closed Infrastructure Securities Investment Fund (abbreviated as “Dongfanghong Tunnel Co., Ltd. Highway REIT,” with the on-market abbreviation “Tunnel REIT,” expanded abbreviation “Dongfanghong Tunnel Co., Ltd. Highway REIT,” fund code: 508020) announced a fund share inquiry. The fund is managed by Shanghai Dongfang Securities Asset Management Co., Ltd., with Shanghai Bank Co., Ltd. serving as the custodian, and Guotai Haitong Securities Co., Ltd. acting as the financial advisor.

According to the announcement, Dongfanghong Tunnel Co., Ltd. Highway REIT will be issued through a combination of targeted placement to strategic investors, inquiry placement to offline investors, and public offering, with a total issuance of 1 billion shares.

The inquiry period is scheduled from 9:00 to 15:00 on March 25, 2026, with a price range set between 4.012 yuan and 4.700 yuan per share. The fund manager and financial advisor will carefully determine the final subscription price based on the bids from offline investors and the bids from placement targets such as public securities investment funds and social security funds.

For strategic placement, the initial allocation is 700 million shares, accounting for 70% of the total issuance. Among these, the original equity holders or their affiliates plan to subscribe for 650 million shares, while other strategic investors plan to subscribe for 50 million shares. The initial offline issuance is 210 million shares, and the initial public offering is 90 million shares.

Dongfanghong Tunnel Co., Ltd. Highway REIT mainly invests in highway assets held by Tunnel Co., Ltd., aiming to generate stable cash flow returns by holding equity in infrastructure project companies. The fund manager states that this fund is expected to have a risk-return profile lower than equity funds but higher than bond funds and money market funds, making it suitable for investors seeking stable income.

A clawback mechanism is also set up for this issuance. Based on the subscription payments from strategic investors and the subscription results from offline and public offerings, the fund manager and financial advisor may decide to adjust the quantities of various issuance categories. Additionally, the announcement provides detailed disclosures on lock-up periods, subscription fees, suspension conditions, and other key information to ensure investors are fully aware of the issuance rules and risks.