Croesus Retail Trust, a business trust in Singapore have on 23 Mar 2016 announced of a potential placement of 60 million shares. These shares are looking to be placed between $0.745 to $0.77. This is a steep discount in my opinion over the closing share price of $0.81. Balance sheet wise this will reduce Croesus Retail Trust gearing from 46% debt to asset value to 44%. Note that Croesus as a business trust is not limited to the 45% debt to asset leverage limit for REITs. They adopted a 60% debt to asset limit.

My Take

The narrative of this placement seems to be an unwillingness to take a rights issue for future acquisition and hence a book building for placement The discount to current price for placement suggest the demand, as a strong company with a accretive acquisition may have been able to placed out on ......