SG Digest: Eagle Hospitality Trust, Frasers Centrepoint Trust In IPO News

US-focused hospitality asset REIT Eagle Hospitality Trust (EHT) has priced its initial public offering (IPO) at $0.78 per stapled security, below indications. On the other hand, Frasers Centrepoint Trust (FCT)’s latest private placement equity fundraising exercise exceeded expectations, garnering S$369.69 ($268.88 million) in gross proceeds.

Eagle Hospitality Trust finalises IPO price at $0.78 per stapled security

EHT has finalised its IPO price at $0.78 per stapled security, below the indicative range of $0.80 to $0.81. To breakdown the numbers further, EHT is offering 580.6 million stapled securities, comprising an international placement of 535.7 million stapled securities to institutional and other investors, and a public offering of 44.9 million stapled securities in Singapore.

The manager is seeking to raise gross proceeds of $565.8 million, which will be used for payment all acquisition-related costs, issuance and debt-related costs, and working capital.

The sponsor for the EHT offering is US-based property firm Urban Commons. The stapled group comprising of EH-REIT, which invests in a diversified portfolio of income-producing real estate assets focusing on US hospitality sector, and a EH-Business Trust (EH-BT), which will be dormant as of the listing date. The initial portfolio of EHT comprises 18 full-service hotel properties (17 of which are freehold) in the US, adding a total of 5,420 rooms with an aggregate valuation of $1.27 billion.

Frasers Centrepoint Trust private placement offering gets overwhelming response

Frasers Centrepoint Trust (FCT) released the results of their latest private placement offering, with the new units fully subscribed by 2.3 times at an issue price of S$2.382 – the top end of its issue price range of S$2.30 to S$2.382.

The private placement was put out yesterday as part of its funding requirements for the one-third acquisition stake in suburban mall Waterpoint Point, and to pare down bridging loans used for acquisition of 18.8 per cent stake in PGIM Real Estate Asia Retail Fund Limited. The placement issue also comes with an upsize option which was fully taken up. A total of 155.2 million new units were issued, and the gross proceeds received amounted to S$396.6 million ($268.88 million).

The private placement issue price of S$2.382 represents a discount of 15 per cent to the adjusted volume-weighted average price (VWAP) of S$2.4189 per unit.

Units of FCT were last traded at S$2.40, down 5 Singapore cents, or 1.632 per cent as at 2:42 pm (Singapore time) when the trading halt was lifted on May 17. There were approximately 4.48 million units changed hands, and the total market capitalisation is approximately S$2.28 billion.