Axis REIT unit placement oversubscribed

KUALA LUMPUR (Nov 22): Axis Real Estate Investment Trust (Axis REIT) saw a good response to its shares placement exercise.

In a statement to Bursa Malaysia on Monday, Axis REIT said the 75.18 million units were placed out at RM2.45 each. Acquirers of the new shares are expected to make payment within five market days from the price fixing date of Nov 18 while trading of the new units is expected to begin on Dec 7.  The property trust did not specify who the investors are, and the oversubscription quantum for its latest placement which raised RM184.2 million. Axis REIT closed at RM2.57 on Monday.

In a separate statement, Stewart LaBrooy, CEO and executive director of Axis REIT Managers Bhd, which manages Axis REIT, said investors' continuing interest in the property trust underlined the efforts of the manager to improve the stock's liquidity, deliver higher income distribution, and expand the property trust via yield-accretive acquisitions.

Upon completion of the exercise, Axis REIT's issued share capital will expand to 451.08 million units. This translates into a market capitalisation of RM1.16 billion based on the unit's closing price on Monday.