Far East Organization, Singapore’s biggest closely held developer, raised $656.3 million in an initial public offering of a hotel trust, three people with knowledge of the matter said.

Far East Hospitality Trust plans to sell 705.7 million stapled securities at 93 cents apiece, the top end of a marketed range, the people said, asking not to be named as the information is private. The units were offered at 86 cents to 93 cents, according to a prospectus filed with the Monetary Authority of Singapore this month.

The IPO is the biggest this year in Singapore, where US$785 million ($981 million) has been raised in such sales so far in 2012 compared with US$7 billion in the first seven months of 2011, according to data compiled by Bloomberg. Ascendas Hospitality Trust started trading in the city last month after raising $459 million.

A stapled security allows investors to purchase both a trust and a related company. The Far East Hospitality units comprise a real estate investment trust and a business trust, according to the listing prospectus.

Far East Hospitality will initially include 11 properties, according to the offering document. Among these are seven hotels, including Albert Court Village Hotel and Orchard Parade Hotel, as well as four serviced residences. Far East Hospitality forecasts a dividend yield of as much as 6.5% for 2012.

DBS Group Holdings, HSBC Holdings Plc and Goldman Sachs Group Inc. are managing the IPO. The Wall Street Journal reported the pricing earlier today, citing unidentified people. An outside spokeswoman for Far East Organization had no comment on the pricing.