Frasers Centrepoint Trust’s 48m new stocks over 4 times subscribed

New units priced at S$1.39 each received strong demand from more than 30 institutional investors.

According to a release, Frasers Centrepoint Asset Management Ltd., the manager of Frasers Centrepoint Trust, announced the successful completion of the private placement of 48.0 million new units in FCT at an offering price of S$1.39 per unit.

The Offering Price, which has been fixed at the top end of the offering price range of S$1.35 and S$1.39, was determined following the completion of a book-building process which was approximately 4.1 times subscribed on the back of strong demand from more than 30 new and existing Asian and European institutional investors.

The Offering Price represents a discount of approximately 2.5% to FCT’s adjusted1 volume weighted average price of S$1.426 per unit for trades done on the full market day on 14 September 2011. The gross proceeds and net proceeds from this placement which amounts to approximately S$66.7 million and S$64.3 million respectively, will be used to part-finance the acquisition of Bedok Point.

Mr Philip Eng, Chairman of FCAM, said, “The strong investor demand for the placement in FCT’s units amidst a volatile market environment, demonstrates investors’ confidence in FCT’s growth strategy and its potential to deliver attractive total returns to its unitholders.”

Dr Chew Tuan Chiong, CEO of FCAM, said, “We are delighted with the strong subscription for the placement and we thank investors for their solid support in FCT. FCT has a solid growth track record and investors have good visibility of its growth trajectory. Moving ahead, we will continue to execute our growth strategies to grow FCT’s portfolio and to further enhance the returns to our unitholders.”