Mainboard-listed Suntec REIT says its private placement of 128.5 million units was more than five times oversubscribed.
The trust had priced the new units at S$1.19 each, a discount of 6.5 percent to Thursday’s volume-weighted average price of S$1.2724 per unit.
Suntec REIT said the gross proceeds from the private placement amounted to S$152.9 million.
Net proceeds after deducting the underwriting, selling and management fee and other estimated fees and expenses came to S$149 million.
The trading of the new units on the mainboard is expected to start at 2pm on December 22.
Suntec REIT is raising the cash to strengthen its balance sheet and capital structure. It said the net proceeds will be used to reduce existing indebtedness.
Suntec REIT said the money will also be used to partly or wholly finance its investment activities while maintaining financial flexibility.
It added that the move may possibly increase the trading liquidity of the units.
Source : Channel NewsAsia – 11 Dec 2009
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