CDL Hospitality Trusts launches S$148.8 million preferential offering
The trust will put 97.8% of the proceeds towards buying the 475-room Moxy Singapore Clarke Quay hotel.
CDL Hospitality Trusts has launched an offering to raise approximately S$148.8 million, with most of the money earmarked for its acquisition of Moxy Singapore Clarke Quay. The non-renounceable preferential offering comprises 231,413,692 new stapled securities.
Investors will pay S$0.643 for each new stapled security. That represents a discount of about 9.9% against the volume-weighted average price of S$0.7135 recorded in Singapore Exchange trading on 10 November.
The trust has allocated about S$145.6 million, representing 97.8% of gross proceeds, to help fund the purchase of the 475-room lifestyle hotel. The other S$3.2 million is intended to pay professional fees and other expenses associated with the offering.
DBS Bank Ltd. and Maybank Securities Pte. Ltd. will jointly underwrite the offering. The record date is 18 November at 5 p.m. Subscriptions open on 23 November at 9 a.m., with the offer closing on 1 December at 5.30 p.m.
