CAPITALAND Ascott Trust (Clas) will issue 191.8 million new stapled securities through a private placement at S$1.043 apiece, and another 100.5 million through a preferential offering at S$1.025 per new stapled security, to raise total gross proceeds of S$303.1 million.

New stapled securities from the preferential offering will be issued based on 29 preferential new stapled securities for every 1,000 existing stapled securities.

Trading of new stapled securities from the private placement is expected to commence at 9 am on Aug 14.

At S$1.043, the private placement issue price represents a discount of about 6.8 per cent of Clas’ volume weighted average price for all trades on the stapled group’s last trading day – Aug 1.

The preferential offering issue price of S$1.025 represents an 8.4 per cent discount to the same, said the stapled group’s managers on Thursday (Aug 3).

Both issue prices for the private placement and preferential offering were fixed at the lower end of the ranges stated on Wednesday, when its managers proposed the fundraising exercise. The earlier-announced ranges were S$1.041 to S$1.065 for each private placement new stapled security, and S$1.025 to S$1.044 for each preferential offering new stapled security.

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About S$170.2 million, or 56.1 per cent of proceeds from the overall fundraising exercise, will go into funding the stapled group’s proposed S$530.8 million acquisition of assets from its sponsor, which includes The Cavendish London, a hotel in London.

Another S$82.8 million or 27.3 per cent will go into financing Clas’ planned extension and renovation of Novotel Sydney Central, its hotel asset in Australia.

Some S$19.9 million or 6.6 per cent will go into financing the renovation of Citadines Holborn-Covent Garden London, the stapled group’s serviced residence in London.

Clas will set aside S$24.4 million or 8.1 per cent of gross proceeds for the repayment of debt, with the remaining S$5.8 million or 1.9 per cent of gross proceeds to pay estimated fees and expenses incurred from the equity fundraising exercise.

Clas’ stapled securities closed unchanged at S$1.12 on Aug 1, ahead of a a requested trading halt. The counter resumed trading on Thursday.