CapitaLand Integrated Commercial Trust’s (CICT) private placement was approximately 3.7 times covered after its book of orders were closed. The issue price per private placement was also fixed at $2.04.
The price represents a 4.4% discount to the volume weighted average price (VWAP) of $2.1338 per unit for all trades in CICT on Sept 2. It represents a 3.4% discount to the adjusted VWAP of $2.1122 per unit.
A total of 171.7 million units will be issued under the private placement.
The REIT announced that it was launching an equity fund raising (EFR) exercise on Sept 3 to raise some $1.1 billion. The net proceeds from the EFR, which comprises a private placement and preferential offering, will be used to finance the acquisition of the 50% stake in ION Orchard.
CICT, on Sept 3, announced its intention to acquire 50% of ION Orchard at an agreed property value of $1.85 billion. The REIT's sponsor, CapitaLand Investment (CLI) will divest its 50% stake to the REIT. The proposed acquisition is subject to the approval of CICT's unitholders at an extraordinary general meeting (EGM).
A total of 377.3 million units under the preferential offering will be issued to eligible unitholders of CICT at $2.007 per unit. The issue price under the preferential offering represents a 5.9% discount to the VWAP of $2.1338 per unit and a 5% discount to the adjusted VWAP of $2.1122.
See also: CICT's manager proposes to acquire ION Orchard at $1.85 billion, subject to EGM
Of the $1.1 billion, the private placement is expected to raise $350.3 million while the preferential offering is expected to raise $757.2 million.
Trading of CICT’s private placement units is currently expected to commence at 9am on Sept 12.
As at 9.07am, units in CICT are trading 9 cents lower or 4.23% down at $2.04.
