CICT to raise S$500 million from private placement of 237.5 million units at S$2.105 apiece

[SINGAPORE] Capitaland Integrated Commercial Trust (CICT) on Tuesday (Aug 5) announced a proposed launch of over 237.5 million new units to raise gross proceeds of around S$500 million, with a minimum offering price of S$2.105.

The issue price range between S$2.105 and S$2.142 per new unit represents a discount of between around 4.1 and 5.7 per cent to the volume weighted average price (VWAP) of S$2.2334 per unit for trades of the units executed on Monday.

It also represents approximately 1 and 2.7 per cent to the adjusted VWAP of S$2.1637 per unit, said the manager of the trust.

Citigroup Global Markets Singapore, DBS and JP Morgan Securities Asia are collectively the joint bookrunners and underwriters. The companies entered into a placement agreement with the manager on Tuesday.

These new units are expected to be listed on the Singapore Exchange on Aug 14. The current expectation of the trust’s manager is that the quantum of distribution per existing unit held as at the close of Aug 13, under the cumulative distribution is estimated to be between S$0.0692 and S$0.0702. This comes on the back of CICT’s H1 DPU of S$0.0562, to be paid on or around Sept 18.

The manager of CICT said that it intends to use around S$466.5 million or 93.3 per cent of these proceeds will finance the proposed acquisition of the remaining 55 per cent interest in the office and retail component of CapitaSpring, located at 86 and 88 Market Street.

Another S$26.3 million or 5.3 per cent of the gross proceeds is set for the repayment and refinancing of debt and/or capital expenditure, as well as asset enhancement initiatives.

Lastly, S$7.2 million or 1.4 per cent of the gross proceeds of the private placement will be used to pay the estimated transaction-related expenses, including professional fees and expenses, incurred or to be incurred by CICT due to the private placement.

Units of CICT closed up 2.3 per cent or S$0.05 at S$2.24, before the Reit called for a trading halt on Tuesday morning.