KUALA LUMPUR (March 17): Quill Capita Trust (QCT) announced it has fixed its private placement at RM1.20 per unit, raising gross proceeds of RM78 million to partly finance the acquisition of Platinum Sentral from MRCB Sentral Properties Sdn Bhd.

In a filing with Bursa Malaysia, QCT said a total of 65 million units — representing 16.66% of the approved fund size of 390.13 million — will be allocated to selected investors.

The group said the private placement price represented a discount of 1.86% or 2.27 sen to the five-day volume-weighted average market price (VWAMP) of RM1.2227, between March 9 and March 13.

To recap, QCT had proposed a placement of between 55 million new units and 85 million new units, by way of book-building, to acquire Platinum Sentral from MRCB Sentral Properties Sdn Bhd for a total of RM740 million.

QCT (fundamental: 0.55; valuation: 3) said it will pay RM476 million via cash, while the balance will be satisfied via the issuance of 206.25 million new units at RM1.28 per unit.

Upon completion of the corporate exercise, QCT’s total assets will increase from RM868 million to RM1.6 billion.

As a result, QCT’s position among the real estate investment trusts (REITs) in Malaysia will rise from the current 13th to become the 8th largest among the listed REITs in Malaysia.

The stock closed 0.83% higher to RM1.22 today, giving it a market capitalisation of RM472.06 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)