FCT's private placement 2.3 times subscribed, S$369.6m raised

Singapore

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

Closing one day after its launch on Thursday, the placement - including an upsize option that was fully taken - will result in 155.2 million new units being issued and net 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.

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 before the exercise launch.

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 the market opened. Its units closed down 2.04 per cent, or S$0.05, at S$2.40 on Friday.