OUE Hospitality Trust to raise $238.6m in rights issue

To finance its Crowne Plaza Changi Airport works.

OUE Hospitality Trust (OUE-HT) is attempting to summon funds to the tune of $238.6m in a rights issue.

According to a report by OCBC, OUE-HT announced an underwritten and renounceable rights issue of of 441,901,257 new stapled securities.

The rights issue would provide stapled security holders the opportunity to subscribe for their pro-rata entitlement to the rights stapled securities at an issue price of $0.54 per rights stapled security. This reflect a discount of around 29.4% to yesterday’s closing price of $0.765.

OCBC notes that 86% of the proceeds will be channeled towards OUE-HT’s acquisition of the extension to Crowne Plaza Changi Airport.