SINGAPORE - CapitaLand Commercial Trust (CCT) has priced an upsized $217.9 million overnight placement of units at $1.676 apiece to cover the rich end of initial indications.
Price talk was at a range of $1.631 and $1.676 per unit for the deal, which launched on Thursday (May 17).
The issue price represents a discount of about 3.2 per cent to the counter's volume weighted average price of $1.7306 on Wednesday.
The counter last traded at $1.72 apiece on Wednesday, and trading has been halted since then. Trading resumes at 8.30am on Friday.
According to the trust, the private placement was 3.1 times covered and drew strong demand from new and existing institutional, accredited and other investors.
About $214.6 million, or 98.5 per cent, of the gross proceeds will be used to partially finance the acquisition of a 94.9 per cent stake in a prime Frankfurt property, also known as the Gallileo Property. The remainder will be used to cover placement-related expenses and working capital.
DBS Bank, Citigroup Global Markets Singapore, and JP Morgan (SEA) are joint bookrunners and underwriters for this deal.
Subject to certain conditions in the placement agreement and in-principle approval being granted by the Singapore Exchange, listing of the new units is expected to commence at 9am on May 28.