Frasers Centrepoint Trust is proposing to raise at least S$421.7 million in gross proceeds from a private placement of new units and a non-renounceable preferential offering, the trust said in a filing to SGX Thursday.
The private placement of 135.66 million units at S$2.30 to S$2.382 each is expected to raise at least S$312 million, and it is subject to an upside option which could bring the total to around S$369.6 million, the filing said, noting the units would be offered to eligible institutional, accredited and other investors.
In addition, the trust said it would offer up to 48.34 million new units in a non-renounceable preferential offering at S$2.27 to S$2.352 each to raise at least S$65.4 million.
The proceeds aren’t expected to exceed around S$437.4 million, it said.
The private placement issue price range is a discount of 2.3 percent to 5.7 percent to the volume weighted average price (VWAP) of S$2.4378 per unit for all trades on Wednesday, Frasers Centrepoint Trust said.
The preferential offering price range is a discount of 3.5 percent to 6.9 percent to the VWAP, the trust said.
The private placement issue price will be set following a book-building process, while the preferential offering price will be set afterward, it said.
Around S$245.3 million of the gross proceeds are earmarked to acquire a third of Sapphire Star Trust, which holds the retail units in the Waterway Point mall in Singapore’s Punggol region, and a third of Sapphire Star Trust’s trustee, FC Retail Trustee, the filing said.
Another S$176.4 million of the proceeds will be used to partly pay bridging loans Frasers Centrepoint Trust has taken for the acquisition of a stake in PGIM Real Estate AsiaRetail Fund, which was announced in February and March, the filing said.
DBS Bank, BNP Paribas’ Singapore branch and Citigroup Global Markets Singapore have been appointed as underwriters for the equity fund raising, the trust said.
The new units issued under the private placement are expected to list on SGX on 28 May, it said.
The books closure date to participate in the preferential offering is 27 May, while the listing date for those new units is expected on 18 June, it said.
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