Keppel DC REIT’s Strategic Move: Issuance of 334.9 Million Units in Private Placement

Keppel DC REIT Management Pte. Ltd., acting as the manager of Keppel DC REIT, has successfully completed the issuance of 334,929,000 new units via a private placement at an issue price of S\$2.090 per unit. This significant move is part of their Equity Fund Raising initiative aimed at generating gross proceeds of approximately S\$1 billion.

The newly issued units, now trading on the Main Board of Singapore Exchange Securities Trading Limited (SGX-ST) as of 9:00 a.m. on 28 November 2024, bring the total number of units in circulation to 2,060,662,299. The new units will rank pari passu with existing units, entitling holders to distributions from 28 November 2024 onwards, although they are not eligible for the advanced distribution covering 1 July 2024 to 27 November 2024.

Significantly, these units are excluded from participation in the pro rata and non-renounceable preferential offering. This strategic move by Keppel DC REIT is expected to bolster its financial standing and market influence, potentially impacting the share price positively.

However, shareholders should note the potential risks associated with this investment, including market volatility and absence of guaranteed returns. The units are not obligations of or deposits in the Manager or any affiliates, and investors can only trade these units via the SGX-ST. The announcement specifies that no public offering will occur in jurisdictions where it is restricted or prohibited, such as the United States, European Economic Area, and several others.

Disclaimer: This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell securities. Investing in securities involves risks, including the potential loss of the principal amount invested.

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