UPDATE: Ascendas India Trust private placement meets strong demand

Mural of construction gear in Singapore's Little India neighborhood.Mural of construction gear in Singapore's Little India neighborhood.

This article was originally published on Wednesday, 20 November 2019 at 7:48 A.M. SGT; it has since been updated to include more details.

Correction: A previous version of this article misstated the placement’s discount to the volume weighted average price on Monday. The correct figure is 2.9 percent.

Ascendas India Trust’s private placement met with strong demand, pricing at the top of its range to raise around S$150 million, the trust said in a filing to SGX Wednesday.

The offering priced at S$1.508 per unit, the top of the S$1.465 to S$1.508 indicative range, marking a 2.9 percent discount to the volume weighted average price of S$1.5538 for all trades on Monday, the filing said.

The placement was around 4.1 times covered, leading to the number of units offered to be increased to 99.47 million from at least 66.31 previously, Ascendas India Trust said.

Around S$144.0 million of the proceeds are earmarked to partially finance the initial funding for phase one of an under-development business park project in Bangalore via the subscription of 7.5 billion Indian rupees (S$144 million) of non-convertible debentures issued by the project’s seller, the trust said. It noted there was no assurance the project would materialize.

Around S$3 million of the proceeds will be used for project funding for existing pipeline projects and to repay indebtedness, and another S$3 million would go toward the placement’s expenses, Ascendas India Trust said.

The new units are expected to begin trading on 28 November, the filing said.

The trust requested the trading halt on its units be lifted.

Citigroup Global Markets Singapore and DBS Bank are joint bookrunners and underwriters for the issue, the filing said.