Keppel DC REIT: last done $2.23. has recently announced a rights issue as part of its strategy to fund acquisitions and strengthen its financial position. The proceeds are intended to support the purchase of two data centre buildings and to reduce existing debt.
KEPPEL DC REIT
Analysts have provided insights into Keppel DC REIT’s performance and prospects:
UOB Kay Hian (January 2024): The firm maintained a ‘Buy’ rating, noting that while provisions for arrears from Guangdong data centres impacted 2H23 results, the REIT’s geographical diversification cushioned the negative effects.
Morningstar (January 2024): Morningstar reported that 2H23 results were lower than expected due to higher loss allowances for its Guangdong data centres.
Given the strategic intent behind the rights issue and the REIT’s efforts to enhance its portfolio, participating could be beneficial. However, it’s crucial to consider the potential risks, such as the challenges faced with the Guangdong data centres.
Keppel DC REIT: Last done $2.23. has announced a pro rata, non-renounceable preferential offering to raise funds for strategic acquisitions. Here’s a detailed breakdown of how this rights issue works:
Offering Structure:
Allotment Ratio: Eligible unitholders are entitled to 86 new units for every 1,000 existing units they hold as of the record date.
Issue Price: Each new unit is priced at S$2.03.
Key Dates:
Ex-Date: 26 November 2024 – The date on which the units trade without the entitlement to participate in the rights issue.
Record Date: 27 November 2024 – The date on which unitholders must be registered to be eligible for the preferential offering.
Eligibility:
The offering is non-renounceable, meaning entitlements cannot be sold or transferred. However, unitholders have the option to apply for excess new units beyond their initial entitlement.
Purpose of the Rights Issue:
The funds raised will support Keppel DC REIT’s acquisition of interests in two data centre buildings, enhancing its portfolio and income resilience.
Participation Process:
Notification: Eligible unitholders will receive an offer information statement detailing the rights issue.
Acceptance: Unitholders can subscribe to their entitled new units by submitting the required forms and payment within the specified subscription period.
Excess Application: Unitholders may apply for additional new units beyond their entitlement. Allocation of excess units is subject to availability and will be determined by the REIT’s management.
Important Considerations:
Dilution: Non-participating unitholders may experience dilution of their ownership percentage.
Funding: Unitholders should ensure they have sufficient funds to subscribe to their entitlements and any additional units they wish to apply for.
For comprehensive details, unitholders should refer to the official announcements and offer documents provided by Keppel DC REIT.
Investors holding Keppel DC REIT units through the Central Depository (CDP) or via the Central Provident Fund (CPF) can participate in rights issues and apply for excess rights by following these steps:
1. Exercising Rights Entitlements:
For CDP Account Holders:
You will receive a notification detailing your rights entitlement and instructions for acceptance.
To accept your rights, you can:
Submit the acceptance form along with the required payment to CDP.
Use ATMs of participating banks to accept and make payment electronically.
For CPF Investment Scheme (CPFIS) Investors:
Inform your CPF agent bank of your intention to exercise your rights.
The bank will handle the acceptance and payment using your CPF funds.
2. Applying for Excess Rights:
For CDP Account Holders:
Indicate the number of excess rights you wish to apply for on the excess rights application form.
Submit the form with the necessary payment to CDP.
Alternatively, apply for excess rights via ATMs of participating banks.
For CPFIS Investors:
Notify your CPF agent bank of your desire to apply for excess rights.
The bank will process the application and arrange payment from your CPF funds.
Important Considerations:
Payment:
Ensure sufficient funds are available in your designated account (cash or CPF) to cover the acceptance and application amounts.
Application Outcome:
Allocations for excess rights depend on availability and are not guaranteed.
Priority is typically given to rounding up odd lots, with remaining excess rights distributed on a pro-rata basis or as determined by the issuer.
Deadlines:
Adhere strictly to the submission deadlines specified in the rights issue documentation to ensure your applications are processed.
For detailed instructions and specific dates related to the rights issue, refer to the official announcements from Keppel DC REIT and consult with your financial institution or CPF agent bank.
Thank you
