Immobiliare Grande Distribuzione SIIQ SpA is poised to carry out the proposed maximum €150 million share capital increase via an offering of up to 29,037,340 new ordinary shares at €5.165 apiece.
The Italian real estate investment trust will issue no-par value shares, with regular entitlement on a pre-emptive basis, at a subscription ratio of five new shares for every 14 ordinary shares held by shareholders. The proceeds will be entirely allocated to the share capital, according to a release.
The issue price reflects a roughly 24.75% discount to the theoretical ex-rights market price of the company's ordinary shares.
The period to exercise the option rights valid for the new shares' subscription will run from March 26 to April 13. The rights may also be traded on the Italian bourse's Mercato Telematico Azionario, or MTA, starting March 26 until April 9. Rights not exercised by the close of the option period will be offered on the MTA within the following month, according to the release.
Immobiliare will list the new shares on the STAR segment of the MTA.
The trust said shareholder Coop Alleanza 3.0 Soc. Coop. agreed to fully subscribe to its about 40.92% portion of the share capital increase, equating to approximately €61.4 million. Joint global coordinators and joint book runners Banca IMI SpA (Intesa Sanpaolo Group), BNP Paribas and Morgan Stanley & Co. International plc will subscribe for the remaining shares.
Part of the proceeds from the issuance will be used to fund the €187 million acquisition of four Italian properties from Eurocommercial Properties NV, with any remaining funds to be channeled towards reducing the REIT's indebtedness, as per a previous release.
The company also said it will propose to pay 50 euro cents per share as dividend for 2017, representing an 11% year-over-year uptick from 45 cents, at the ordinary shareholders' meeting June 1.