Mapletree Commercial Trust Preferential Offering of 71 New Units For Every 1000 Existing Units

I have previously wrote about Mapletree Commercial Trust’s acquisition of Mapletree Business City (Phase 2) which will be funded by a private placement of New Units to institutional and other investors; and / or a non-renounceable preferential offering of New Units to the existing unitholders of MCT on a pro rata basis.

The proposed acquisition was confirmed on the EGM that was held on 15th of October. On 16 October 2019, the Manager proposed to carry out an equity fund raising comprising an offering of 406,482,840 New Units to raise gross proceeds of no less than S$902.3 million by way of:

  • A private placement of 200,893,000 New Units at an issue price of between S$2.240 and S$2.280 per New Unit to raise gross proceeds of no less than S$450.0 million (the “Private Placement”); and
  • A pro-rata and non-renounceable preferential offering of 205,589,840 New Units on the basis of 71 New Units for every 1,000 existing units in MCT (“Existing Units”) to be held as at the Preferential Offering Books Closure Date to Entitled Unitholders at an issue price of between S$2.200 and S$2.240 per New Unit (fractions of a New Unit to be disregarded) to raise gross proceeds of no less than S$452.3 million (the “Preferential Offering”), (together, the “Equity Fund Raising”)

on 15th October 2019, the closing price of Mapletree Commercial Trust is S$2.34. Based on the issue price of S$2.24, this is around 4.27% discount to the current trading price. Of course there is a possibility the current share price may either go further up or down depending on how investors think about the preferential offering.

Here are some important dates for the Preferential Offering

Date/Time Event
5pm, Thursday, 24 October 2019 Closure of MCT’s Transfer Books and Register of Unitholders for the Cumulative Distribution
5pm, Friday, 8 November 2019 Unitholders and depository agents must have completed and returned Form A or Form B, as applicable, to the Unit Registrar, Boardroom Corporate & Advisory Services Pte. Ltd.
Thursday, 21 November 2019 Payment of the Cumulative Distribution