CDLHT launches S$148.8 million preferential offering
Most of the expected proceeds will help fund the acquisition of the 475-room Moxy Singapore Clarke Quay hotel.
CDL Hospitality Real Estate Investment Trust (CDLHT) has launched a preferential offering of 231.4 million new stapled securities priced at S$0.643 each. Its manager said on Nov 11 that the exercise is expected to generate around S$148.8 million in gross proceeds.
The non-renounceable offer entitles holders to 18 new stapled securities for each holding of 100 existing securities. The offer price is 9.9 per cent below the volume-weighted average price of S$0.7135 per stapled security.
The manager said S$145.6 million would go towards the purchase of Moxy Singapore Clarke Quay. The 475-room lifestyle hotel is expected to open by the end of the first quarter of 2027. The balance of the proceeds will cover expenses associated with the offering.
The record date is Nov 18 at 5pm. Subscriptions open at 9am on Nov 23 and close at 5.30pm on Dec 1, with the new securities due to start trading on Dec 9.
Before the announcement, CDLHT’s stapled securities had closed unchanged at S$0.715.
