Mapletree Commercial Trust plans to raise at least S$902.3 million through an equity fund raising to partially fund its planned acquisition of Mapletree Business City Phase 2 and nearby commercial spaces in Singapore.
The company will offer 406,482,840 new units via a private placement and a preferential offering. The private placement will consist of 200,893,000 units with an issue price of between S$2.240 and S$2.280 each to raise gross proceeds of at least S$450.0 million.
The pro rata and non-renounceable preferential offering will be held Oct. 24 and will consist of 205,589,840 new units priced between S$2.200 and S$2.240 each. The issuance is expected to raise gross proceeds of at least S$452.3 million, and will be offered to entitled unit holders on a basis of 71 new units for every 1,000 existing units.
Mapletree Commercial said it aims maintain a balanced capital structure and borrowing limit for its S$1.58 billion acquisition, as imposed by the Monetary Authority of Singapore.
In September, Mapletree Commercial agreed to purchase Mapletree Business City, along with its common premises, from Heliconia Realty Pte Ltd.
As of Oct. 16, US$1 was equivalent to S$1.37.