Mapletree Industrial Trust's (MIT) private placement equity fund-raising exercise was 8.2 times covered at an issue price of $2.80 - the top end of its issue price range.
The exercise was launched on Tuesday and closed yesterday. The upsize option was fully taken, so 146.4 million new units will be issued, netting the real estate investment trust gross proceeds of about $410 million.
The new units are expected to start trading on around July 2.
Demand came from "a broad spectrum of investors, including new and existing institutional investors", the manager said yesterday.
The issue price represents a 1.6 per cent discount to MIT's adjusted volume-weighted average price of $2.8456 per unit.
MIT intends to use about $302.6 million of the gross proceeds to fully fund the proposed acquisition of the remaining 60 per cent stake in 14 data centres in the United States.
A further $100.9 million will repay debt, fund acquisitions or be used for general working capital purposes. The rest will be used for paying estimated fees and expenses related to the placement.
The proposed acquisition is subject to unit holder backing at an extraordinary general meeting to be convened. If MIT does not proceed with the acquisition, the proceeds will be redeployed for investments or to pare debt, the manager said.
The units, which began trading as part of the benchmark Straits Times Index on Monday, closed up 4.58 per cent at $2.97 yesterday.
THE BUSINESS TIMES
