CapitaLand Mall Trust sets placement price to raise S$278 million

CapitaLand Integrated Commercial Trust building in Singapore’s Bugis neighborhood.CapitaLand Integrated Commercial Trust building in Singapore’s Bugis neighborhood.

CapitaLand Mall Trust priced its private placement of shares at S$2.07 each, the middle of its S$2.049 to S$2.097 range, in an offer that met with strong demand, the REIT manager said in a filing to SGX late on Thursday.

The placement was 2.7 times subscribed, with the upsize option to a total of 134.09 million new units triggered, to raise gross proceeds of around S$277.6 million, CapitaLand Mall Trust Management said.

The issue price, which was set after a bookbuilding exercise, is an around 3.77 percent discount to the volume weighted average price of S$2.1512 for trades on SGX in Thursday’s session, the last session before the placement was announced, it said.

CMT has earmarked S$273.1 million of the gross proceeds, or 98.4 percent, to partially finance the acquisition of the 70 percent of Infinity Mall Trust it doesn’t already own, the manager said; Infinity Mall Trust owns the Westgate mall.

The remainder of the proceeds will be used for the placement expenses, it said.

The new units are expected to begin trading on 8 November, the filing said.