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
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