Property investor Dexus is mulling its first trip to equity capital markets in 3½ years.
It is understood the company has hired BoA to underwrite and lead the raising, which is slated to launch to institutional investors as early as Monday night.
Dexus shares closed down 2.4 per cent to $7.82 on Monday, valuing it at $8.4 billion or about $13.5 billion including debt.The raising comes as Dexus shares trade at their lowest level since 2016, and after chief executive Darren Steinberg pitched investors in Asia last week.Funds raised are expected to be put towards the group’s balance sheet. Dexus has an ambitiousDexus reported 27.8 per cent gearing at June 30.
Macquarie analysts told clients on Monday morning that Dexus’ sources and uses of capital were key for investors. “The group has as material development pipeline including Atlassian and Waterfront, and in our view an inability to achieve asset sales could result in leverage moving towards 40% should cap rates expand 100bps,” the analysts told clients.
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