Hot stock: FCT falls as much as 3.9% on proposed placement, Nex stake acquisition

UNITS of Frasers Centrepoint Trust (FCT) shed as much as 3.9 per cent during the morning trading session on Friday (Jan 26), even as investors digested a proposed private placement to boost FCT’s interest in retail mall Nex.

The real estate investment trust (Reit) on Thursday proposed a private placement of 91.7 million units to raise S$200 million. Gross proceeds will be used to fund an acquisition of Frasers Property’s 24.5 per cent stake in the mall.

FCT’s units dropped as much as 3.9 per cent to a low of S$2.19 as at 9.15 am after the Reit lifted its trading halt called on Thursday. The counter later recovered slightly to S$2.23 as at 1.53 pm, with 12.7 million units changing hands.