Mapletree Logistics Trust sells $220m of units at $1.197 apiece, at top end of price talk

Units in Mapletree Logistics Trust closed at $1.23 per unit on Thursday, up 1.65 per cent, or two cents. PHOTO: MAPLETREE LOGISTICS TRUST

SINGAPORE - Mapletree Logistics Trust (MLT) has priced an upsized $220 million overnight placement of units at $1.197 apiece to cover the rich end of initial indications.

Price talk was at a range of $1.165 and $1.197 per unit for the deal, which was launched on Thursday (May 24).

The issue price represents a discount of about 2.25 per cent to the counter's volume-weighted average price of $1.2246 on Thursday.

According to MLT, the private placement was about 5.2 times covered after taking into account the upsize option and saw strong participation from investors. The upsize option was exercised in full, MLT said.

About 93.3 per cent, or $205.3 million of the gross proceeds will be used to fund MLT's acquisition of a 50 per cent interest in 11 logistics properties in China. The rest will be used to fund placement related expenses and working capital.

Subject to certain conditions and approval being granted by the Singapore Exchange Securities Trading (SGX-ST), trading of the new units on the Singapore bourse is expected to commence on, or around June 5 at 9am.

Citigroup Global Markets Singapore, DBS Bank, and the Hongkong and Shanghai Banking (Singapore) are joint global coordinators and bookrunners for this private placement.

Units in MLT closed at $1.23 per unit on Thursday, up 1.65 per cent, or two cents.

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