FCT’s upsized private placement closes at S$2.09 apiece, equity fundraising totals S$421.3 million 

[SINGAPORE] Frasers Centrepoint Trust’s upsized private placement, which closed at S$2.09 apiece, raised around S$220 million in gross proceeds, said the manager on Wednesday (Mar 26). 

At an enlarged issue size of S$220 million, it was about four times covered. Alongside its preferential offering, this brings funds raised from its equity fundraising exercise to a sum of around S$421.3 million. 

The S$2.09 apiece private placement issue price represents a 5.6 per cent discount to the volume weighted average price (VWAP) of S$2.2136 apiece for all trades done on the Singapore Exchange for the preceding market day on Monday, until the underwriting agreement was signed on Tuesday. 

It also represents a 2.9 per cent discount to the adjusted VWAP of S$2.1521 per unit, after subtracting the cumulative distribution range which is estimated to be S$0.0615 per unit. 

A total of 105.3 million new private placement units are expected to be issued on or around Apr 4.

The S$421.3 million of gross proceeds from the equity fundraising exercising will be used to repay debts, fund the proposed acquisition of all units of North Gem Trust (NG Trust) and for other fees related to the fundraising exercise that have been or will be incurred by FCT, the manager said.

NG Trust is a private trust that holds the interests in the South Wing of Northpoint City – which FCT’s manager has entered into an agreement, with FCL Amber and Bright Bloom Capital, to acquire for S$1.17 billion. 

As the private placement drew strong demand from new and existing institutional, accredited and other investors, FCT’s manager and the underwriters agreed to increase its size from S$200 million to S$220 million, the manager said.

FCT called for its trading halt to be lifted on Wednesday morning.

The counter ended Monday flat at S$2.21, before it called for a trading halt on Tuesday morning.