ESR-Reit nets S$50m in oversubscribed preferential offering
ESR-Reit has netted gross proceeds of S$50 million from a more than twice oversubscribed preferential offering, with no additional units alloted beyond the original amount it had set out to raise.
The funds include sponsor ESR Cayman's acceptance of its alloted 8.8 million units, or about S$4.5 million based on the issue price of S$0.510 per unit.
ESR Cayman had a 8.97 per cent stake in ESR Reit before the offering, which will be reduced to 8.78 per cent after the new units are issued on Oct 14.
The Reit announced in June the preferential offering alongside a private placement offering, with both exercises raising a total of S$150 million in gross proceeds.
Proceeds from the preferential offering will be used to partially finance asset enhancement works at the Reit's Ang Mo Kio and Changi business park properties, and repay existing debts.
ESR-Reit's units, which are trading ex-dividend, closed down S$0.01 or 1.9 per cent at S$0.525 on Thursday.
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