Keppel Infrastructure Trust raises $525m via private placement, preferential offering

It’s the largest equity deal so far this year.

Keppel Infrastructure Trust (KIT) has raised $525 million through a private placement and preferential offering to be conducted to finance the acquisition of a 51% stake in Keppel Merlimau Cogen Pte Ltd.

The private placement issue price has been fixed at $0.52 per share, a 6.15% discount to the adjusted volume-weighted average price, which excludes the special distribution of 1.05 cents per unit and the pre-equity fund raising stub distribution of 0.11 cents per unit, for which the private placement units are not eligible.

KIT will also conduct a non-renounceable preferential offering under which existing unitholders will be entitled to subscribe to 1 new unit for every 13 units owned as at 28 May 2015 at 5.00 pm at a preferential offering price of $0.515 per unit, which is at a discount to the private placement price.

This equity deal is the largest in the year to date in Singapore and represents approximately 36% of KIT's outstanding units before the equity fund raising exercise.

The private placement attracted strong institutional interest from new and existing investors, and was more than 2 times subscribed. Long only institutional and corporate investors were allocated approximately 75% of the private placement.