Keppel DC REIT private placement meets strong demand

Singapore 50 dollar bill

Correction: This article has been updated to reflect the correct day the statement was issued; it was filed to SGX late Monday.

Keppel DC REIT’s private placement of 135 million new units met with strong demand, with the offering fully covered at the top end of its pricing range within an hour, the REIT said in a filing to SGX late Monday.

“The private placement was approximately 9.3 times covered, and demand came from new and existing institutional as well as other accredited investors,” the REIT said.

The price was fixed at S$1.744, the top of the S$1.703 to S$1.744 indicative range, the filing said. That was a discount of 2.5 percent to the volume weighted average price of S$1.7882 a unit for trades on Friday, the REIT said.

The private placement was expected to raise around S$235.4 million, the REIT said. The new units are expected to be issued on or around 25 September, it said.

Keppel DC REIT said Monday it planned 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 for a total of around S$585.1 million.

The two data centers are located in Singapore, with one partly owned by Keppel Infrastructure Trust and the other partly owned by Keppel Data Centres Holdings, the companies said Monday.

The REIT said its preferential offering price was fixed at S$1.71 for 141.99 million new units, and will be on the basis of 105 new units for every 1,000 units. The preferential offering is expected to raise around S$242.8 million, the filing said.

The pricing is a discount off 4.4 percent to Friday’s volume weighted average price, the filing said.

Around S$438.6 million of the equity fundraising proceeds will be used to partially fund the acquisitions and around S$31 million is earmarked for capital expenditure, Keppel DC REIT said.

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