Real Estate
Shocks the market with a US$2.4bn rights issue (30% discount to the undisturbed price of HK$62.80 as of 9th Feb & 45% discount to NAV Sep 22) and comes shortly after the group announced a S$2.2bn acquisition of two Singapore assets in late Dec 2022, where management explicitly mentioned that they didn’t need to raise any new capital. The issue is complicated even further by the fact that management has spent HK$400m+ over the past year buying back its units at prices above where the stock is trading now. In this note, Sumeet Singh talks about the rights issue, its previous acquisition and the overall implications.
Edition: 154
- 17 February, 2023