PETALING JAYA: Axis Real Estate Investment Trust (Axis REIT) has proposed an issuance of up to 247.46 million new shares, representing up to 20% of its total issued shares, to repay its bank financing.
In a filing with Bursa Malaysia, Axis REIT said the actual size of the placement and exact amount of proceeds would be determined at a later date, but at an illustrative price of RM1.75 per share, gross proceeds of up to RM433.05 million could be raised from the proposed placement.
“The proposed placement will enable Axis REIT to raise funds expeditiously to be used to repay its existing bank financing (including finance cost payable), which were taken up to finance the acquisitions of properties and carry out development projects.
“The proposed placement is in line with the board’s strategy to reduce its gearing ratio. This will provide Axis REIT with sufficient headroom to make future acquisitions of new properties and carry out development projects via bank financing,” it said.
As at Sept 30, 2019, Axis REIT’s gearing stood at 40.17%.
The company said the shares would be placed out to third party investors, also to be identified at a later date.
The first tranche of the proposed placement is expected to be completed by the end of 2019.
At 2.48pm, Axis REIT’s share price was trading 7 sen lower at RM1.74 on 1.49 million shares done.
source https://www.thesundaily.my/business/axis-reit-to-raise-up-to-rm433m-to-repay-borrowings-GF1546019
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