An offer by Vukile Property Fund on Tuesday of up to 20.5 million new linked units had been significantly oversubscribed, the listed property loan stock company said later on Tuesday.

The issue was equivalent to 4.99 percent of the total number of linked units in issue and was offered at a price range of R16.65 to R17.

Vukile said the new linked units were placed with qualifying institutional investors at a price of R16.70 each, raising R342.8 million.

The units will not qualify to receive the interim distribution for the six months to September because they will be issued after the record date for the distribution.

Rand Merchant Bank, a division of FirstRand, acted as sole bookrunner for the offering.

Vukile said the proceeds of the issue would be used to repay debt facilities and reduce its gearing, adding that the repayment of debt was expected to be yield enhancing. Vukile’s linked units rose 0.94 percent to R17.16 yesterday. – Roy Cokayne