Keppel DC REIT plans to raise around S$474 million in equity fundraising

Singapore two-dollar bills

Keppel DC REIT plans to raise around S$473.8 million via an equity fundraising including a private placement and a preferential offering to finance the proposed acquisitions of two data centers, the REIT said in a filing to SGX Monday.

The private placement will be of 135 million new units to be issued at S$1.703 to S$1.744, to raise around S$229.9 million and S$235.4 million, the REIT said. It will be offered to accredited, institutional and other investors, the filing said.

The price range is a discount of 2.5 percent to 4.8 percent to the volume weighted average price (VWAP) of S$1.7882 a unit for all trades on Friday, the REIT said.

The preferential offering will be at S$1.67 to S$1.71 per new unit, to raise around S$238.4 million to S$243.9 million, the filing said.

That range is a discount of 4.4 percent to 6.6 percent to Friday’s VWAP minus the estimated advanced distribution to unitholders of 1.81 Singapore cents per unit for the 1 July to 24 September period, the REIT said.

Under its mandate agreed at its annual general meeting, the REIT can issue up to 675.97 million new units, or 50 percent of the 1.35 billion total units, with the private placement accounting for around 10 percent, the filing said. The REIT said the number of new units to be issued under the preferential offering would be within the 50 percent limit, or no more than around 540.63 million new units.

That means unitholder approval isn’t required for the equity fundraising, the REIT said.

Keppel DC Investment Holdings and Keppel DC REIT Management, which together hold around 25.21 percent of the REIT’s units, have agreed to take up their full allotment under the preferential offering, the filing said, adding that would allow Keppel Group to maintain its stake in the REIT.

Details of the preferential offering will be issued later, the REIT said.

The units issued under the private placement are expected to begin trading of 25 September, while the preferential offering is expected to open on 27 September and begin trading on 15 October, the filing said.

Keppel DC REIT entered deals to acquire two data centers in Singapore, one partly owned by Keppel Infrastructure Trust and the other partly owned by Keppel Data Centres Holdings, for a total of around S$585.1 million, the companies said in filings to SGX Monday.

DBS Bank, Citigroup Global Markets Singaporeand Credit Suisse (Singapore) have been appointed as the joint bookrunners and DBS Bank, Citigroup Global Markets Singapore, Credit Suisse (Singapore) and CLSA Singapore have been appointed as the joint underwriters for the equity fundraising, the filing said.

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