The closing price represents a 5.2% discount to the volume weighted average price (VWAP) of $3.11 per unit as at May 4.
SEE:Ascendas REIT to raise $420 mil through private placement
In a filing to SGX on May 5, the manager states that the placement was 2.6 times covered, with “strong demand from new and existing institutional, accredited and other investors”.
The filing also highlights that DBS's Treasury Investments Unit (DBS TI), a wholly-owned subsidiary of DBS Group Holdings, was allocated 16.5 million units through the exercise. Temasek Holdings, which indirectly holds a stake in Ascendas REIT via its 52.2% indirect holding in sponsor Ascendas Land International (Investments), also holds a 29.9% interest in DBS Group.
See also: Stoneweg: New sponsor, new chapter
SGX has stated that it has no objections to the placement of new units to DBS TI pursuant to Rule 812(4) of the Listing Manual of the SGX-ST, subject to certain conditions, including DBS operates independently from and is not involved in the management of Ascendas REIT and the sponsor, as well as no common directors between the manager, the sponsor and DBS, among others.
Units in Ascendas REIT closed 2 cents higher or 0.6% up at $3.12 on May 4.
