Lendlease Reit preferential offering undersubscribed with 62.2% take-up
Underwriters DBS, OCBC, UOB to absorb around S$74.3 million worth of stock
Add BT as a preferred source
[SINGAPORE] A recent preferential offering for Lendlease Global Commercial Reit , to raise S$196.6 million to pay for its PLQ Mall stake buy, was only 62.2 per cent subscribed in what is a rare undersubscription.
At the issue price of S$0.558 per unit, the joint underwriters – DBS, OCBC and UOB – will have to procure subscribers for S$74.3 million worth of stock or take up the 133.2 million unsubscribed units themselves.
The real estate investment trust (Reit) is using the proceeds from the offering to take control of its remaining 30 per cent stake in PLQ Mall, giving it full ownership and operational control of the asset. The remaining funds are earmarked to cover related transaction costs and pare down existing debt.
A total of 352.4 million new units were on offer, with 53.1 per cent of valid acceptances and 9.1 per cent in excess applications, the Reit’s manager said on Monday (Mar 23). The preferential offering closed on Mar 18.
Meanwhile, Lendlease Corporation, the Reit’s sponsor, fulfilled its undertaking by accepting its full provisional allotment of 73.7 million units, which accounts for about 20.9 per cent of the total offering.
The new units are expected to start trading on the Singapore Exchange at 9 am on Thursday.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
Units of the Reit rose 1.8 per cent or S$0.01 to close at S$0.575 on Friday.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
