CapitaLand Ascott Trust prices new units under private placement at $1.043 each

It will issue a total of 191,755,000 new units.

CapitaLand Ascott Trust (CLAS) will issue 191,755,000 new units under its private placement at $1.043 a piece.

In a bourse filing, CLAS said the issue price represents a discount of “approximately 6.8% to the volume weighted average price (VWAP) of $1.1195 per Stapled Security for all trades in the Stapled Securities on the Singapore Exchange Securities Trading Limited (SGX-ST) for the preceding Market Day on 1 August, up to the time the Underwriting Agreement was signed on 2 August 2023.”

Apart from the new units under its private placement, CLAS will also issue 100,538,407 units through a preferential offering at $1.025 each.

CLAS said the price of its preferential offering represents a discount of “approximately 8.4% to the VWAP of S$1.1195 per Stapled Security and approximately 5.5% to the Adjusted VWAP of $1.0848 per Stapled Security.”

CLAS expects to raise $200m from the private placement and $103.1m from the preferential offering, or a total of $303.1m gross proceeds.

The company will set aside $170.2m or 56.1%  of the total gross proceeds to partially fund its “proposed acquisitions and the associated costs.”

Meanwhile, it will allocate $82.8m or 27.3% to finance CLAS’ estimated costs for the Proposed Australia Hotel Extension and Renovation.

CLAS will also use the funds to finance CLAS’ estimated costs for the Proposed UK Serviced Residence Renovation ($19.9m or 6.6%), repay debt ($24.4m or 8.1%), and pay the estimated fees and expenses, including professional fees and expenses, incurred or to be incurred in connection with the Equity Fund Raising ($5.8m or 1.9%)

Trading of the private placement units on the Singapore Exchange Securities Trading Limited (SGX-ST) will commence on 14 August at 9 a.m.