The manager of Frasers Centrepoint Trust (FCT) says it has raised $575 million through its private placement.
The private placement, which was announced on September 28, was about 2.8 times subscribed.
The private placement issue price of $2.35 represents a discount of 4.9% to the adjusted volume weighted average price (VWAP) of $2.472 per unit.
The manager of Frasers Centrepoint Trust (FCT), announced on September 28, that it plans to raise some $1.33 billion through a private placement of between 236.1 million to 244.7 million new units to institutional and other investors, as well as a non-renounceable preferential offering of between 313.4 million to 324.6 million new units to existing unitholders of FCT.
New units under the private placement will be priced at an issue price of between $2.35 and $2.44 to raise proceeds of about $575 million. The private placement is also subject to an upsize option to issue up to 42.6 million additional private placement units that would place the total gross proceeds of the private placement of up to $675.0 million.
The preferential offering will have an issue price of between $2.34 and $2.42 per unit to raise gross proceeds of some $746.0 million.
“We appreciate the strong support from our unitholders and investors for the Private Placement, amidst market uncertainties and the ongoing pandemic. The total fund raising amount of $1,334.7m will comprise more than 45% of our present market capitalisation,” says Richard Ng, CEO of the manager.
Of the $1.33 billion it intends to raise from the equity fund raising, the manager says it will use some $1.02 billion to fund the PGIM Asia Retail Fund (ARF) purchase consideration of some $1.06 billion. It will also use another $32.1 million to pay the estimated stamp duties and other fees incurred in the acquisition, as well as $284.9 million for its debts.
On September 3, FCT said that it intends to acquire the 63.1% in PGIM Asia Retail Fund (ARF) it does not own. The 63.1% stake in ARF is currently held by Frasers Property (FPL). The manager also announced the proposed sale of Bedok Point.
Units in Frasers Centrepoint Trust closed flat at $2.52 on September 28.
