CRCT sells $103.8m of units at S$1.612 to cover rich end of price talk

SINGAPORE - Capitaland Retail China Trust has priced an upsized S$103.8 million overnight placement of new units at S$1.612 apiece to cover the rich end of initial indications, its manager announced on Wednesday (Nov 29).

Price talk was at a range of S$1.553 to S$1.612 per unit for the deal, which was launched on Tuesday. A total of 64.4 million new units were issued, including an over-allotment option of 12.9 million units that was fully exercised.

The placement price represents a discount of 3.5 per cent to the counter's S$1.6707 volume-weighted average price on Tuesday. The counter last traded at S$1.67 on Tuesday.

The China-based mall real estate investment trust (Reit) will use about S$101.7 million of the proceeds to help fund a joint acquisition of Rock Square mall in Guangzhou, China.

The remaining S$2.1 million of the proceeds will be used to pay placement-related expenses.