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Author: kimeng   |   Latest post: Mon, 19 Aug 2019, 10:59 AM

 

Mapletree Industrial Trust: Placement to Raise Gross Proceeds of S$201m

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Mapletree Industrial Trust (MIT) announced that it has closed its upsized private placement exercise, with 103.36m new units to be issued at an issue price of S$1.945 per unit, or a discount of 4.2% to its last closing price. Total gross proceeds to be raised amounts to ~S$201m.

The private placement was ~2.2 times covered after taking into account the upsized option (initial plans were to raise no less than S$175m in gross proceeds). The issue price of S$1.945 comes in at the lower end of an indicative price range of S$1.935 to S$1.99 announced last evening.

Approximately S$197.8m, or 98.4% of the gross proceeds would be utilised to partly finance the acquisition of 18 Tai Seng Street (total acquisition outlay of S$271.0m), with the balance being used to pay the fees and expenses associated with the private placement.

We are not surprised at this equity fund raising exercise, as management had previously guided that it was considering various funding options including partial debt and equity when it proposed to acquire the property. We had previously assumed full debt financing for the acquisition.

We currently have a HOLD rating and S$2.04 fair value estimate on MIT.

Source: OCBC Research - 12 Feb 2019

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