CapitaLand Retail China Trust has launched an equity fund raising of new units to raise between S$273.4 million and S$279.4 million via a private placement and a preferential offering, the trust said in a filing to SGX Thursday.
“The manager intends to use the net proceeds from the equity fund raising to finance part of the total acquisition cost of the proposed acquisition of the companies which hold CapitaMall Xuefu, CapitaMall Aidemengdun and CapitaMall Yuhuating,” CRCT said.
The proposed acquisitions will add “strategically located and high-quality assets” and significantly increase CRCT’s portfolio size, net property income and diversification, the filing said.
The private placement of 105.04 million new units at an issue price of S$1.428 to S$1.469 is expected to raise gross proceeds of S$150 million to S$154.3 million, the filing said. The placement will be made to eligible institutional, accredited and other investors, CRCT said.
The price range is a discount of 5.2 percent to 7.9 percent to the closing price of S$1.55 on Thursday, the filing said.
The issue price will be set by the trust manger and the joint global coordinators and bookrunners, DBS Bank and J.P. Morgan (S.E.A.), after a book-building process, CRCT said.
The new private placement units are expected to be listed on 14 August, the filing said.
The non-renounceable preferential offering will be for 86.87 million new units, on the basis of 87 new units for every 1,000 existing units held as of 13 August, CRCT said. The issue price will be between S$1.42 and S$1.44 each, to raise between S$123.4 million and S$125.1 million, the filing said.
The price range is a discount of 7.1 percent to 8.4 percent to Thursday’s closing price of S$1.55, CRCT said, adding the issue price will be set after the private placement price has been determined.
The opening date for the preferential offering is expected to be 16 Sugust, with the new units to be listed on 3 September, the filing said.
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