Citigroup closed an S$115 million $67 million follow-on offering for Ascendas Real Estate Investment Trust yesterday Tuesday. The success of the deal showed that investors may becoming re-interested in yield plays in more volatile and bearish market conditions.
The offering was marketed on the basis of a fixed issuance amount and a price range of S$1.3825 to S$1.425. This led to the issuance of 82.14 million new units at S$1.40 per unit, which represented an aggressive 1.75% discount to the stock's dividend adjusted close. Cazenove was also a placing agent.
When the stock was suspended Tuesday lunchtime, it was trading at S$1.45, unchanged from the previous...
