AIMS APAC REIT (AA REIT) O5RU is seeking to raise around $100.0 million through a private placement and preferential offering.
The REIT is looking to place between 56.04 million and 57.66 million units at an issue price of between $1.214 and $1.249 apiece to raise proceeds of $70 million. The non-renounceable preferential offering will raise another $30 million through the issuance of up to 25.38 million new units to existing eligible unitholders at between $1.189 and $1.224 per new unit.
Existing unitholders will be eligible to an advanced distribution of between 1.7 cents to 1.9 cents per unit for the period between April 1 and May 30. The record date to be entitled to the advanced distribution and the eligibility to participate in the preferential offering is at 5pm on June 9.
The issue price range for the private placement represents a discount of between 4.0% and 6.7% to the adjusted volume weighted average price (VWAP) of $1.301 per unit, subtracting the estimated advanced distribution of about 1.80 cents per unit.
The issue price range also represents a discount of approximately 5.3% and 8.0% to the VWAP of $1.319 per unit of all trades done on the SGX-ST on May 30, up to the time the underwriting agreement was signed on May 31.
This is the REIT’s first equity fund raising (EFR) exercise since 2017. It is said to be able to help the REIT unlock greater value organically through active enhancement and re-development strategy. It will also enable the REIT to pursue growth opportunities through targeted acquisitions. In addition, the EFR will allow a “greater alignment of interests” between the sponsor group, which is made up of AIMS APAC Capital Holdings and the relevant AIMS entities, as well as its unitholders. Finally, the EFR is said to improve trading liquidity in the REIT.
See also: Changes in ICR, leverage to come into effect immediately, with additional disclosures in March
The sponsor group, which owns about 75.01 million units, or 10.35% of the total units in AA REIT, has provided an irrevocable undertaking to the manager and the joint bookrunners and underwriters, which are DBS Bank, Maybank Securities and RHB Bank Berhad. AACH and the relevant AIMS entities will accept, subscribe and pay in full for its total provisional allotment of the new units under the preferential offering. They will also make applications for the number of excess new units under the preferential offering which are not taken up by other unitholders.
Units in AIMS APAC REIT closed at $1.31 on May 30.
