CICT launches private placement to raise $200 mil

103.6 mil new units will be issued at an issue price between $1.93 to $1.981, with a potential upside option subject to demand.

The manager of CapitaLand Integrated Commercial Trust (CICT) has announced the proposed private placement of new units in CICT to raise gross proceeds of no less than $200 million on Dec 7.

A total of 103.6 million new units will be issued at an issue price between $1.93 to $1.981, with a potential upside option subject to demand. The issue price represents a discount of between 1.3% and 3.9% to the adjusted volume weighted average price of $2.00076 per unit.

JP Morgan and United Overseas Bank have been appointed joint bookrunners and underwriters for the private placement.

According to the manager, $150 million of the gross proceeds will be used to partially finance the proposed acquisitions of all the units in Acacia Goulburn Trust and Acacia Arthur Trust, which hold the two properties in Sydney, Australia CICT had announced it was acquiring on Dec 3.

See: CICT acquires two Grade A office buildings in Sydney for $330.7 mil; this is the trust's first inroad into Australia

Approximately $45.9 million of the gross proceeds will be used to partially fund potential acquisitions in Singapore and other developed markets, while the remaining $4.1 million will be used to pay transaction-related expenses.

Shares in CICT closed down 1 cent or 0.49% lower at $2.05 on Dec 6 before trading was halted this morning.

Cover picture of 100 Arthur Street: CICT

See Also:

• Click here to stay updated with the Latest Business & Investment News in Singapore

• Analysts mixed on CICT’s maiden foray into Australia

• CICT acquires two Grade A office buildings in Sydney for $330.7 mil; this is the trust's first inroad into Australia

• Manulife US REIT raises US$100 mil through private placement; issue price fixed at 64.9 US cents per new unit

• Read more stories about where the money flows, and analysis of the biggest market stories from Singapore and around the World

• Get in-depth insights from our expert contributors, and dive into financial and economic trends

• Follow the market issue situation with our daily updates

• Or want more Lifestyle and Passion stories? Click here