UPDATE 1-Religare Health to raise $416 mln in Singapore IPO-sources

SINGAPORE, Oct 11 (Reuters) - Religare Health Trust willraise S$511 million ($416 million) after pricing its initialpublic share offer in Singapore at S$0.90 a share, at the lowerend of its indicative range, two sources with direct knowledgeof the matter said on Wednesday.

The final pricing would indicate a prospective distributionyield of 8.95 percent, said one of the sources. The sourcesdeclined to be named because they were not authorized to speakto the media.

According to a prospectus last month, Religare was planningto price its IPO at an indicative price range of S$0.88 toS$0.97 and sell up to 567.5 million shares.

"Its high dividend yield will catch the attention of someinvestors and dividend plays are quite popular now, as seen bythe rise in REITS," said Ng Kian Teck, lead analyst at SIASResearch.

Religare will own hospital-related assets managed by Indianhospital group Fortis . The offering is the latest in astring of trust listings in Singapore that have attracted demandfrom investors seeking high dividend yields in an environment ofvolatile markets and low interest rates.

Far East Hospitality Trust's S$717.6 million IPOin August was the largest IPO in Singapore this year.

Singapore-listed real estate investment trusts

have surged 32.1 percent so far this year,outperforming the benchmark Straits Times Index's 14.6percent rise.

"Religare will be a growth and dividend play, given thatthey're looking to expand in India itself. Their dividend payoutwill be quite high but the question is whether this issustainable," said Ng.

Religare has a mandate to invest in medical and healthcareassets and services in Asia, Australasia and emerging markets.After the listing, a wholly-owned subsidiary of Fortis will hold28 percent stake in the listed entity.

CIMB , DBS , Nomura Holdings ,Religare Capital Markets and Standard Chartered arejoint bookrunners for the IPO with Citigroup as joint leadmanager.($1=1.2293 Singapore dollars)

(Reporting by Saeed Azhar and Charmain Kok; Editing by JohnMair)

((charmian.kok@thomsonreuters.com)(+65 6403 5666)(ReutersMessaging: charmian.kok.reuters.com@reuters.net))