Frasers Centrepoint Trust (FCT) has successfully raised approximately S$220m through a private placement, which was four times oversubscribed. The placement, initially set at S$200m, was increased due to high demand from institutional, accredited, and other investors. The new units were priced at S$2.090 each, representing a 2.9% discount to the adjusted volume-weighted average price.
The private placement is part of a larger equity fund-raising effort, which, along with a non-renounceable preferential offering, aims to raise a total of approximately S$421.3m. The proceeds will primarily be used to repay existing debts and fund the acquisition of North Gem Trust and its trustee-manager, Frasers Property North Gem Trustee Pte. Ltd.
The new units from the private placement are expected to be issued around 4 April 2025. These units will rank equally with existing units, except for the cumulative distribution and eligibility for the preferential offering. The preferential offering units, priced at S$2.050 each, will be issued on the basis of 54 units for every 1,000 existing units held.
The funds raised will significantly bolster FCT’s financial position, enabling strategic acquisitions and debt repayment. The strong demand for the private placement underscores investor confidence in FCT’s growth strategy and market position. The next distribution will cover income from the issuance date of the new units to 30 September 2025, with regular half-yearly distributions resuming thereafter.
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