Frasers Centrepoint Trust's preferential offering oversubscribed

The firm will realise gross proceeds of about $67.7m to fund its acquisitions.

Frasers Centrepoint Trust’s (FCT) preferential offering was almost two times oversubscribed, a filing with the Singapore Exchange (SGX) revealed.

Valid acceptances and excess applications were received for 196.8% or 56.73 million units of the total number of new units available under the preferential offering, as at the close of the offer on 10 June.

A balance of 3.43 million preferential offering new units which were not validly accepted will be allotted to satisfy applications for excess new units, FCT noted. “In the allotment of excess new units, preference will be given to the rounding of odd lots,” the firm explained, adding that Frasers Centrepoint Asset Management, along with its substantial unitholders and directors who have control or influence over FCT, will rank last in priority for the rounding of odd lots and allotment of excess new units.

A total 28.82 million preferential offering new units at the issue price of $2.35 apiece will be issued to raise gross proceeds amounting to approximately $67.7m.

“Together with the gross proceeds of approximately $369.6m raised from the private placement, gross proceeds of a total of approximately $437.4m have been raised from the equity fund raising,” FCT highlighted.

Also read: Frasers Centrepoint Trust to raise $421.7m via equity fund

The proceeds raised will be used to finance FCT’s acquisition of suburban mall Waterway Point, as well as to pare down the bridging loans used for the acquisition of an 18.8% stake in PGIM Real Estate AsiaRetail Fund.

The preferential offering new units are expected to be listed and quoted in the mainboard of the Singapore Exchange Securities Trading (SGX-ST) with effect from 9 a.m. on 18 June.