Frasers Centrepoint Trust Secures In-Principle Approval for New Unit Issuance – Potential Share Price Impact

Frasers Centrepoint Trust (FCT) has announced it has received in-principle approval from the Singapore Exchange Securities Trading Limited (SGX-ST) for the listing and quotation of new units on the Main Board. This follows the “Launch of Equity Fund Raising to Raise Gross Proceeds of No Less Than Approximately S\$400.0 million,” announced on March 25, 2025. [[1, 2]] This development is potentially price-sensitive and could significantly impact FCT’s share value.

Key Details for Shareholders:

The in-principle approval, granted to Frasers Centrepoint Asset Management Ltd. (the Manager of FCT), is contingent upon several crucial factors. These conditions, outlined in the announcement, are critical for the successful issuance and listing of the new units and include: [[2, 3, 4]]

• Full compliance with SGX-ST listing requirements. [[2, 3]] This is a fundamental condition, and any failure to meet these requirements could jeopardize the entire issuance.
• Undertakings regarding the use of proceeds. The Manager must provide a written undertaking to comply with specific rules regarding the use of funds raised, including detailed disclosure on working capital allocation in future announcements and annual reports. [[2]] This transparency is important for investor confidence.
• Compliance with rules regarding issuance to prohibited persons. Both the Manager and Underwriters must confirm that new units will not be issued to individuals or entities prohibited under Rule 812 of the SGX-ST Listing Manual. [[2]]
• Undertakings from Underwriters. The Underwriters must provide written undertakings to ensure the Manager’s compliance with Rule 803 of the Listing Manual and confirm that Private Placement Units will not be allocated to prohibited parties. [[2]] This underscores the importance of regulatory compliance throughout the process.
• Financial Resources of the Sponsor. A written confirmation from financial institutions is required, confirming the Sponsor’s sufficient financial resources to fulfill its obligations. [[2]] This ensures the financial viability of the undertaking.

The announcement explicitly states that the SGX-ST’s in-principle approval does not indicate the merits of the New Units, FCT, and/or its subsidiaries. The exchange assumes no responsibility for the accuracy of the statements made in this announcement. [[2, 3]] This is a standard disclaimer but highlights the importance of conducting independent due diligence.

Furthermore, the announcement reiterates that there will be no public offering of securities in the United States or any other jurisdiction where such an offering is restricted or prohibited. The offer of New Units will only be made available in other jurisdictions where legally permissible without formal disclosure or registration. [[1]] This geographical limitation is a crucial aspect for potential investors.

The announcement also includes important information for investors regarding investment risks, including the possibility of loss of principal, the lack of a redemption right for unitholders, and the absence of a guaranteed liquid market for the Units. Forward-looking statements are also included, cautioning investors against undue reliance on these statements due to inherent risks and uncertainties. [[3]]

Specific details on the allocation of the approximately S\$400 million in gross proceeds are not explicitly detailed in this announcement but are referenced in the March 25, 2025 announcement. This information will be crucial for investors to assess the potential impact of the equity fund raising on the company’s future.

Disclaimer:

This article is for informational purposes only and does not constitute financial advice. The information provided is based on the provided document and may not be exhaustive. Investors should conduct their own thorough due diligence before making any investment decisions.

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