Sagicor rights grab $5.2b

Sagicor Real Estate Fund raked in $5.2 billion for the 747,668,375 shares offered in a rights issue to fund expansion plans for the company. The company says the expanded issue was oversubscribed. Initially, 598,134,700 were provisionally allotted shareholders, later increased by 149,533,675 shares.
The additional shares were available to shareholders as shares over and above their provisional allotment. The funds received from the Rights Issue will be invested as equity in a new subsidiary, X Fund Properties LLC established in the USA. X Fund Properties LLC will purchase the DoubleTree Hilton at the Entrance to Universal in Orlando, Florida.
The DoubleTree by Hilton at the entrance to Universal is 742 guest rooms hotel with over 62,800 square feet of meeting and convention space. It is located in Orlando at the entrance to the Universal Theme Park. The purchase price for the Hotel is US$75 million. The balance of the purchase price is expected to be financed by a US institutional lender.
Notwithstanding, the overwhelming support the stock is overvalued at the right issue price of $6.95 each. Sagicor Real Estate Fund reported profit before taxation in the first quarter of $293 million from revenues of $1.19 billion, the net position in the June quarter was only $72 million from just $37 million less income from the hotel.