Keppel DC REIT priced its private placement at S$2.522 a unit, the top of its S$2.47 to S$2.522 indicative range as the offering was around 3.7 times subscribed, the data center-focused REIT said late Thursday.
The private placement met with strong demand from new and existing unitholders globally, including institutional and accredited investors, the REIT said in a filing to SGX. DBS Bank’s Treasury Investments Unit was allocated 1.6 million new units under the private placement, the REIT said.
The pricing is a 2 percent discount to the volume weighted average price of S$2.5742 a unit for trades on Wednesday.
The sale of 81 million new units raised gross proceeds of around S$204.3 million, the filing said.
Use of proceeds
Around S$67.9 million of the proceeds will be used to partially fund toward the acquisition of the Bluesea property, with the remainder of the deal price financed with debt, the REIT said.
Late last month, the REIT entered a deal to acquire Guangdong Data Centre for 635.9 million yuan, or around S$132 million, from Guangdong Bluesea Data Development (Bluesea) and its parent company, Guangdong Bluesea Mobile Development.
Around S$132.7 million of the proceeds will be used to fund future acquisitions and to repay debt, creating debt headroom for future deals, Keppel DC REIT said.
The remaining proceeds are earmarked for expenses of the placement and general corporate and/or working capital purposes, the filing said.
In a previous filing, the REIT said the new units represent around 5 percent of the total number of units currently in issue, adding increasing the total number of units would enhance free float and trading liquidity. The REIT said it expected the new units to begin trading on SGX on or around 23 August.
An advance distribution of 1.401 to 1.441 Singapore cents will be made to existing unitholders prior to issuing the new units, the REIT said.
Shareholder approval isn’t required for the placement.
Citigroup Global Markets Singapore, DBS Bank, OCBC and Credit Suisse (Singapore) were appointed as joint bookrunners and underwriters for the private placement.
Keppel DC REIT’s units were down 0.8 percent at S$2.55 at 10:23 a.m. SGT.