LMIRT raises S$281m in rights issue

Singapore

LIPPO Malls Indonesia Retail Trust's (LMIRT) preferential offering has raised gross proceeds of S$281 million through a 53.84 per cent subscribed rights issue, its manager said in a bourse filing on Jan 18.

Issued at S$0.06 apiece on a pro rata basis of 160 rights units for every 100 existing LMIRT units, the company said that it had received valid acceptances and excess applications for a total of S$352 million.

This represents about 125.4 per cent of the total number of preferential offering units available.

The balance of some 2.16 billion units, which were not validly accepted by shareholders, will be alloted to satisfy excess applications with preference given to the rounding of odd lots.

The non-underwritten renounceable rights issue was announced in December 2020 as part of the company's fundraising measures to fund the acquisition of the majority portion of strata title units within Lippo Mall Puri.

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LMIRT secured a deal to purchase strata title units in the West Jakarta mall for 3.5 trillion rupiah (S$332.2 million) just last month, after an an extraordinary general meeting (EGM) where 78.6 per cent of unitholders approved the deal.

The remainder of the funds raised from the rights issue will be used as working capital and to pay the fees incurred in connection with the Rights Issue and the debt financing for the acquisition, said the manager in an announcement on Dec 16.

The units will be listed and quoted on the mainboard from 9am on Jan 22.

Units of LMIRT closed on Tuesday at 6.8 Singapore cents, down 0.3 cent or 4.2 per cent.