UPDATE: Keppel Infrastructure Trust to raise around S$500 million after setting equity offering price

Singapore 50 dollar bill

This article was originally published on Friday, 15 March 2019 at 8:09 A.M. SGT; it has since been updated with more details.

Keppel Infrastructure Trust said on Friday that it priced its placement and preferential unit offerings at S$0.441 each, with the total gross proceeds set to raise around S$500.8 million.

It plans a placement of 680.27 million units and a preferential offering of 455.31 million units, totaling around 29.4 percent of KIT’s outstanding units, the trust said in a filing to SGX before the market open on Friday.

The placement’s gross proceeds were expected at around S$300 million, while the preferential offering was expected to raise around S$200.8 million, the filing said.

The S$0.441 per unit pricing of the offerings was a 9.8 percent discount to the volume-weighted average price of S$0.4890 per unit for the full market day of Tuesday and the partial trading day on Wednesday, before the units were halted.

The placement met with strong demand from investors, leading to the total equity fundraising size being raised to S$500.8 million from S$450 million, KIT said. The placement units are expected to list on SGX-ST on 25 March.

The funds are earmarked mainly to partially repay a facility agreement the trust entered in February to finance its acquisition of Ixom HoldCo for A$770 million, KIT said.

The preferential offering will be made on a non-renounceable basis of 118 preferential units for every 1,000 existing units held as of 22 March, KIT said, adding it would open on 27 March.

Unitholders my accept their provisional allotments and apply for excess units through 4 April, it said, adding the units were expected to begin trading on 15 April.

The trust requested that the trading halt on its units be lifted as of 8:30 A.M. SGT on Friday.

Keppel Infrastructure Holdings Pte. Ltd. (KIHPL), which has a direct interest in 702.36 million KIT units, or an 18.2 percent stake, has subscribed for the number of placement units that maintain its percentage unitholding, the filing said.

Credit Suisse (Singapore), DBS Bank, HSBC’s Singapore branch and UOB were joint lead managers, bookrunners and underwriters for the offerings.


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