CDLHT launches preferential offering of 231 million stapled securities at S$0.643 apiece - The Business Times
[SINGAPORE] The managers of CDL Hospitality Trusts (CDLHT) announced on Wednesday (Nov 11) the launch of a preferential offering for 231.4 million new stapled securities at an issue price of S$0.643 per stapled security.
The non-renounceable preferential offering is on the basis of 18 new stapled securities for every 100 existing securities.
The offering, the first in 12 months, is expected to raise gross proceeds of around S$148.8 million.
Of this amount, S$145.6 million will be used to partially finance the S$468 million acquisition of Moxy Singapore Clarke Quay, a 475-room lifestyle hotel.
The hotel is expected to begin operations by the end of the first quarter of 2027; the move is seen to be dividend per share accretive.
The remaining funds will go towards expenses incurred from the preferential offering.
The issue price represents a discount of about 9.9 per cent to the volume-weighted average price of S$0.7135 per stapled security.
Eligible unitholders can apply for additional new stapled securities in excess of their provisional allotments.
Directors of the managers, and those who have control or influence over CDLHT or the managers, will rank last in priority for the rounding of odd lots and allotment.
The record date for the preferential offering is Nov 18, 5 pm.
The preferential offering opens at 9 am on on Nov 23, and will close at 5.30 pm on Dec 1.
Listing and trading of the new stapled securities will begin on Dec 9.
DBS and Maybank have been appointed as the joint underwriters for the preferential offering.
Singapura Developments – a wholly owned subsidiary of City Developments Ltd – Hong Leong Investment, Hong Realty and Hong Leong have each provided an irrevocable undertaking to each of the managers and the joint underwriters.
Stapled securities of CDLHT ended Tuesday flat at S$0.715.
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