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Friday, April 4th, 2025

Keppel DC REIT Raises S$1.1 Billion in Oversubscribed Private Placement and Preferential Offering








Keppel DC REIT’s Ambitious S\$1.1 Billion Fundraising: A Game Changer?

Keppel DC REIT’s Ambitious S\$1.1 Billion Fundraising: A Game Changer?

Keppel DC REIT has announced the successful closure and pricing of its private placement and preferential offering, raising gross proceeds of approximately S\$1.1 billion. This significant move aims to finance new acquisitions and provide for debt repayment and capital expenditures.

Key Highlights

  • The private placement was oversubscribed by 3.4 times, highlighting strong global investor demand, primarily from institutional and accredited investors.
  • The issue price for the Private Placement New Units stands at S\$2.090 per unit, while the Preferential Offering New Units are priced at S\$2.03 per unit.
  • A total of 334,929,000 new units will be issued through private placement, and 148,413,063 units through preferential offering.
  • The fundraising will provide approximately S\$1,086.3 million in total, with S\$700 million from private placement, S\$301.3 million from preferential offering, and S\$85 million from sponsor subscription.

Shareholder Information

The new units are to be issued under a General Mandate, which allows Keppel DC REIT to issue up to 50% of its total units without a pro rata requirement. The allocation of new units is within permissible limits, negating the need for additional unitholder approval.

Potential Impact on Share Value

With the Private Placement and Preferential Offering priced at a discount to the prevailing market price, shareholders might witness a dilution in earnings per unit. However, the proceeds are earmarked for strategic expansions and debt management, which could enhance long-term value.

Use of Proceeds

  • Approximately S\$945.2 million (94.4% of the net proceeds) will be used to partially finance proposed shares and notes transactions.
  • About S\$43.1 million (4.3% of the net proceeds) is allocated for debt repayment and capital expenditures.
  • The remaining S\$13 million (1.3% of the net proceeds) will cover associated fees and expenses.

Important Notices

Investors are advised that the trading of new units on the Singapore Exchange Securities Trading Limited (SGX-ST) is expected to commence on 28 November 2024. The issuance is not available to the general public in the United States, Canada, or other restricted jurisdictions.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own analysis or consult with financial advisors before making investment decisions.




View Keppel DC Reit Historical chart here



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