Ascott Residence Trust increased gross proceeds with 114.9m new units

Check out where this raise will be used for.

According to OCBC Investment Research, Ascott Residence Trust (ART) has raised gross proceeds of S$150m through a placement of 114.9m new units at an issue price of S$1.305 per new unit, representing a discount of ~4.6% on the adjusted VWAP of S$1.3685 for trades done on the SGX-ST on 28 Jan.

Here's more:

The proceeds will be used to fund potential future acquisitions, finance AEIs, repay existing debt and for general working capital. Assuming that the net proceeds of S$147.9m are used to repay existing debts, the private placement is expected to reduce ART’s aggregate leverage from 40.1% to 34.9%. The placement will also increase ART’s free float from 51% to 55%. We maintain our HOLD rating but place our S$1.37 fair value estimate on ART under review. (Sarah Ong)