Towards Financial Freedom
CAPITAMALL TRUST - Raise capital via private placement
Raised S$250m by placing 125m new units. CapitaMall Trust (CMT) just announced that it has successfully placed 125m new units through a private placement at an issue price of S$2.00 per new unit, a discount of 4.8% from the weighted average price of S$2.10, raising gross proceeds of S$250m. The number of shares placed is higher than the previously proposed of 100.5m units due to oversubscription. According to management, 98-99% of the gross proceeds will be primarily used to finance capital expenditure and AEIs of CMT properties, refinance existing debts and working capital. The remaining 1-2% of the gross proceeds will be used to pay for the estimated fees and expenses, including professional fees and expenses incurred in this placement.
Minimal impact on share price. As the new units issued via this placement would constitute only 3.8% of the total share base, we believe this would have minimal impact on the counter's share price as the hunt for dividend yield plays continues on the back of high liquidity, prolonged low interest rate environment and a strong Singapore currency. Given the slight dilution in DPU, we maintain our BUY rating on CMT with a slightly revised TP to S$2.270.
Source: OSK
Minimal impact on share price. As the new units issued via this placement would constitute only 3.8% of the total share base, we believe this would have minimal impact on the counter's share price as the hunt for dividend yield plays continues on the back of high liquidity, prolonged low interest rate environment and a strong Singapore currency. Given the slight dilution in DPU, we maintain our BUY rating on CMT with a slightly revised TP to S$2.270.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
1
RHB Investment Research Reports
ST Engineering - Rolling Forward Our Valuation; Reiterate BUY
2
SGX Market Dialogues
Kopi-C With GuocoLand’s Group CEO: ‘We Have Twin Engines for Growth’
3
CEO Morning Brief
Singapore Home Sales Set for Worst Year Since Financial Crisis
4
CEO Morning Brief
DBS Posts 300% Growth in Semi-liquid Fund Sales in Greater China
5
CEO Morning Brief
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
