135 million units of Keppel DC REIT start trading

Most of the proceeds will be used to fund acquisitions of data centres.

Around 135 million units of Keppel DC REIT has started trading on 25 September and could be paid until 31 December, an SGX filing announced.

The offering is part of the firm’s equity fund raising as the firm seeks to raise about $473.81m through private placement and pro rata and non-renounceable preferential offering. Around 92.6% of the gross proceeds will be utilised to partially fund the proposed acquisitions of 99% interest in Keppel DC Singapore and 100% interest in 1-Net North Data Centre.

Approximately 5.6% or $26.7m will be for funding capital expenditure, whilst the remaining 1.8% or $8.5m will be used to pay the estimated fees and expenses, including professional fees and expenses incurred or to be incurred by Keppel DC REIT for the equity fund raising.

The filing also stated that the private placement issue price range represents a discount of between 2.5% and 4.8% to the volume weighted average price (VWAP) of $1.7882 per unit, whilst the preferential offering issue price range is discounted between 4.4% and 6.6% to the VWAP of $1.7882 per unit.

DBS Bank, Citigroup Global Markets Singapore and Credit Suisse (Singapore) have been appointed as the joint bookrunners.