Frasers Hospitality Trust raised about S$266.3 million in gross proceeds from an underwritten and renounceable rights issuance.
The issuance was oversubscribed at 141.3% and valid acceptances and excess applications for a total of 624,044,816 rights stapled securities were received as of Oct. 7, according to a release. The issuance comprised an offering of 441,549,281 new stapled securities in the company, priced at 60.3 Singaporean cents per rights stapled security.
Frasers Hospitality Trust plans to use majority of the proceeds from the issuance to fund its A$237.0 million purchase of the Novotel Melbourne hotel on Collins in Melbourne. The 380-room hotel, located within the city's core central business district, has an approximate gross floor area of 20,860 square meters and was built in 1992.
The rights stapled securities are expected to be listed and quoted on the Singapore bourse's mainboard, effective Oct. 17 at 9 a.m. local time.
DBS Bank Ltd. and Citigroup Global Markets Singapore Pte. Ltd. served as the joint lead managers and underwriters for the issuance.
As of Oct. 11, US$1 was equivalent to S$1.38 and A$1.32.