Keppel DC REIT Launches S\$404.5 Million Preferential Offering: Major Capital Raise to Fund Future Growth

Key Points Investors Must Know

• Keppel DC REIT is launching a fully underwritten, non-renounceable preferential offering to raise approximately S\$404.5 million in gross proceeds.
• The Record Date for entitlement is set for Tuesday, 30 September 2025 at 5:00 p.m. Unitholders on the register at that time will be eligible for the provisional allotment of new units.
• The New Units are expected to be listed and commence trading on the SGX-ST on 22 October 2025.
• New Units will rank pari passu with existing units, entitling holders to distributions from 1 July 2025 onwards, including the next half-yearly distribution.
• Distribution is only available to “Entitled Unitholders” as defined in the official launch announcement.

Details of the Preferential Offering

The preferential offering is a significant capital-raising exercise designed to bolster Keppel DC REIT’s balance sheet and support its future growth plans. The transaction is fully underwritten, ensuring that the targeted S\$404.5 million will be raised. The proceeds are expected to be used for future acquisitions, asset enhancements, or other corporate purposes, though the announcement does not specify the exact use.

Only those unitholders whose names appear in the Transfer Books and Register of Unitholders as at the Record Date (30 September 2025, 5:00 p.m.) will be entitled to participate in the preferential offering. The new units to be issued will be traded on the Singapore Exchange (SGX-ST) from 22 October 2025.

Importantly, the new units will rank equally with existing units in all respects, including rights to distributions for the period from 1 July 2025 to 31 December 2025, and for all subsequent distributions. This means that investors who subscribe to the new units will not be disadvantaged in terms of upcoming dividend payouts.

Potential Price-Sensitive Information

• The preferential offering will dilute existing unitholders who do not participate. This may affect the unit price in the short term, though the capital raise could provide long-term growth benefits.
• The fully underwritten status of the offering reduces execution risk and signals confidence from underwriters and management.
• The new capital could be used for acquisitions or asset enhancements, potentially driving future distributions and NAV growth.
• The offering is not open to investors in the United States, European Economic Area, Hong Kong (except eligible investors), United Kingdom (except eligible UK investors), Japan, Malaysia, or Australia, limiting its reach to certain jurisdictions.
• The New Units are categorized as “prescribed capital markets products” and “Excluded Investment Products,” which may affect how they are marketed and to whom.

Risks and Other Considerations

• The announcement contains standard forward-looking statements and cautions that past performance is not indicative of future results.
• The REIT units are subject to investment risks, including possible loss of principal.
• Unitholders cannot compel the Manager to redeem or buy back units; trading is only possible via the SGX-ST.
• There is no guarantee of a liquid market for the units after listing.
• The announcement has not been reviewed by the Monetary Authority of Singapore.

Conclusion: What Should Investors Do?

This preferential offering is a major capital event for Keppel DC REIT, with the potential to support growth and enhance distributions if the proceeds are deployed effectively. However, existing unitholders who do not participate may face dilution. Investors should monitor further announcements regarding the use of proceeds and assess their participation based on their long-term view of the REIT’s growth prospects. The offering’s full underwriting is a positive signal, but as always, investors should consider their own risk tolerance and investment objectives before acting.

Disclaimer

This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should consult their own financial advisors before making any investment decisions. The information presented is based on the official announcement and may be subject to change. Past performance is not indicative of future results. The author and publisher are not responsible for any losses arising from reliance on this information.

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