CapitaRetail China Trust

CapitaRetail China Trust (CRCT): Announced that it targets to raise gross proceeds of about $59m by issuing 45.4m new units at $1.30 per unit through a non-renounceable preferential offering to its existing unitholders. The issue price of $1.30 per new unit is at a discount of about 7.5% to the VWAP of $1.4049 on 23 Oct. The preferential offering is made on the basis of 6 new units for every 100 existing units held by eligible unitholders of CRCT. CapitaMalls Asia has committed to take up its pro-rata entitlement, and to undertake to apply for excess units to the extent that CapitaMall Trust does not accept its pro-rata entitlement under the preferential offering. The remaining 62.5% of the units will be fully underwritten by DBS. The net proceeds raised will be used to finance investments for the growth of CRCT’s portfolio, including the proposed acquisition of Grand Canyon Mall in Beijing. OCBC maintain its BUY rating with TP $1.64.