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- The units were priced at 61 sen apiece with 409.8 million new units to be issued, the real estate investment trust said in a statement. The issue price represents a discount of about 6.9% to the five-day volume-weighted average market price of 65.49 sen up to and including July 22.
KUALA LUMPUR (July 23): CapitaLand Malaysia Trust (KL:CLMT) said on Wednesday it has raised about RM250 million from a private sale of new units.
The units were priced at 61 sen apiece with 409.8 million new units to be issued, the real estate investment trust said in a statement. The issue price represents a discount of about 6.9% to the five-day volume-weighted average market price of 65.49 sen up to and including July 22.
Proceeds from the placement will primarily be used to pare down existing bank borrowings incurred for the acquisitions of nine industrial and logistics assets, including the Valdor Logistics Hub and Glenmarie Distribution Centre, which the trust said have already started contributing income.
The private placement through accelerated bookbuilding was oversubscribed, attracting interest from new and existing unitholders, including institutional investors and accredited investors, the trust said. A majority of the new units were allocated to long-only investors, it noted.
“The placement is part of the manager’s prudent capital management strategy to optimise CLMT’s financing structure, enhance balance sheet flexibility and create additional headroom for future growth opportunities,” the trust said.
CIMB Investment Bank is the principal adviser for the placement and the new units are expected to be listed on Aug 8.
At afternoon break on Wednesday, CLMT was flat at 66 sen. The trust is now valued at RM1.9 billion.
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