Singapore-listed Frasers Logistics & Industrial Trust is aiming to raise gross proceeds of about S$476.0 million from an equity fundraising, comprising a private placement and a pro rata, nonrenounceable preferential offering of new units.
The industrial-focused real estate investment trust raised S$329 million from its private placement of 333,199,000 units priced at 98.7 Singapore cents apiece. The trust said the placement was oversubscribed 3.9x, with each unit offered at a 1.3% discount to its adjusted volume-weighted average per-unit price as of the May 9 trading day.
In an earlier release, Frasers Logistics said the placement also involved the issuance of new units to its sponsor, Frasers Property Ltd.
Meanwhile, 152,153,437 new units priced between 94.2 cents and 96.7 cents apiece will be offered in exchange for existing Frasers Logistics units, to raise between S$143.3 million and S$147.1 million as part of the preferential offering. The exchange offer will close May 18 and will be based on the ratio of one new unit for every 10 existing units.
Frasers Logistics noted that the per-unit indicative price range for the preferential offering reflects a 7.3% to 9.7% discount to its S$1.0433-per-unit volume-weighted average price as of May 9.
Proceeds from the fundraising will be used for the trust's planned €316.2 million acquisition of 17 properties in Germany and four more in the Netherlands from Frasers Property. Any remaining amount will be used to cover expenses related to the proposed property purchase and equity fundraising, according to a news release.
DBS Bank Ltd., Merrill Lynch (Singapore) Pte. Ltd. and Citigroup Global Markets Singapore Pte. Ltd. are the joint global coordinators and book runners of the proposed equity fundraising.
As of May 9, US$1 was equivalent to S$1.34.