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FCT oversubscribed placement raises S$369.6m at top end of price range

FRASERS Centrepoint Trust (FCT) said on Friday its private placement equity-fundraising exercise was 2.3 times subscribed at an issue price of S$2.382 - the top end of its issue price range of S$2.30 to S$2.382.

Closing one day after launching on May 16, the exercise - whose upsize option was fully taken - issued 155.2 million new units and netted the retail landlord gross proceeds of about S$369.6 million.

Demand came from new and existing institutional and other accredited investors, said the trust's manager in a filing on the Singapore Exchange (SGX).

The issue price of S$2.382 represents a 1.5 per cent discount to the adjusted volume-weighted average price (VWAP) of S$2.4189, and a 2.3 per cent discount to the VWAP of S$2.4378 for all trades in FCT for the preceding market day (May 15) before the exercise launch.

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FCT previously proposed issuing 135.7 million new units to raise at least S$312 million.

It intends to use part of the gross proceeds to finance all or part of the acquisition of a one-third interest in Waterway Point and to pare down the bridging loans used for the acquisition of the 18.8 per cent stake in PGIM Real Estate Asia Retail Fund.

“We are delighted with the excellent outcome of this private placement, raising more than 16 per cent of our market capitalisation in proceeds, while achieving a tight discount of 1.5 per cent to the adjusted VWAP amidst the market volatilities and ongoing geopolitical trade tensions," said Chew Tuan Chiong, CEO of FCT's manager, Frasers Centrepoint Asset Management. 

FCT has called for lifting of its trading halt on Friday morning before market open. Its units last closed up 0.82 per cent or S$0.02 at S$2.45 on Wednesday, prior to the trading halt on Thursday morning.