AIMS AMP Capital Industrial REIT announced a 7 for 40 underwritten and renounceable rights issuance which will be open to all eligible unitholders.
The rights issue aimed to raise gross proceeds of approximately S$100.0 million. The majority of the funds raised will be used to finance asset enhancement initiatives, development projects and/or third party acquisitions in Singapore, and a portion will be used to pay down debt, working capital purposes, as well as cover the equity issuance costs.
The rights issue would provide unitholders with the opportunity to subscribe for rights units at an issue price of S$1.08 per rights unit, which is at a discount of 23.7 percent to the closing price of S$1.415 per unit on 14 February 2014 and 20.9 percent to the theoretical ex-rights price of S$1.365.
You can find the presentation slides here. The important dates and events are listed below:
If you intend to stay invested in the company, I recommend you read this excellent post by La Papillion. Do NOT forget the last date for acceptance and payment of the rights entitlement on 13th Mar 2014. Another option is to save the hassle and sell the shares before 19 February.
As for me, I bought my shares a couple of years ago at an average price of $1.10. I plan to divest part of my stake and keep the remaining for a favorable excess rights allocation.
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