SGX-listed Mapletree Industrial Trust (MIT) is proposing a private placement of 90.44 million new units to raise at least $129 million (S$175 million).
According to an SGX filing, part of the proceeds will be used to finance the acquisition of 18 Tai Seng Street. This is subject to an upsize option being exercised, which will involve issuing up to 12.92 million additional new units to raise at least $18.4 million (S$25 million).
The new units will be placed to investors at an issue price of between $1.43 and $1.47 (S$1.935 and S$1.990) per new unit. This indicates a discount of between 4.65 per cent and 1.94 per cent respectively, based on the volume weighted average price of $1.5 (S$2.0293) per unit of all trades on Feb 11.
The REIT manager and DBS bank will determine the issue price. DBS is the sole bookrunner and underwriter of the placement.
According to the filing, Mapletree intends to use $126.9 million (S$172.1 million) of the proceeds to partially refinance the acquisition of Tai Seng Street. The remaining $2.1 million (S$2.9 million) will be used to pay the fees and expenses incurred from the placement. Any excess funds will go towards refinancing the acquisition, debt repayment, future acquisitions and other corporate and working capital purposes.
The new units are expected to be issued on Feb 20.