Keppel REIT Secures SGX Approval for Major S\$113 Million Private Placement: What Investors Need to Know

Key Highlights: Massive New Unit Listing to Raise S\$113 Million

• Keppel REIT has received in-principle approval from the Singapore Exchange (SGX-ST) to list 114,954,000 new units.
• The private placement is set to raise gross proceeds of no less than approximately S\$113.0 million.
• The new units will be issued at S\$0.983 per unit.
• Proceeds are to be used in compliance with specific SGX listing rules, including full transparency on the use of funds, especially for working capital.
• The placement is not open to retail investors in the US, UK, or EEA and is targeted at institutional and other eligible investors only.
• Strict undertakings and confirmations are in place to ensure no prohibited parties under SGX rules receive units.

Details Investors Should Not Miss

Keppel REIT Management Limited, manager of Keppel REIT, announced the successful receipt of in-principle approval from SGX-ST for the listing, dealing, and quotation of 114,954,000 new units. This is a significant capital-raising move, and the units will be listed on the Main Board of the SGX-ST.

The private placement was closed at an issue price of S\$0.983 per unit, which may be of particular interest to investors monitoring the trust’s valuation metrics and dilution impact. The total amount to be raised is at least S\$113 million, aligning with the trust’s ongoing capital management and growth strategies.

The placement is supported by a syndicate of joint underwriters: DBS Bank Ltd., Oversea-Chinese Banking Corporation Limited, and United Overseas Bank Limited.

SGX Approval Conditions: Transparency and Compliance

• Keppel REIT must comply with all SGX-ST listing requirements.
• The manager is required to provide detailed disclosures and breakdowns on the exact use of proceeds, particularly if any funds go towards working capital. These disclosures must be made in both announcements and annual reports.
• Undertakings are required from both the manager and the joint underwriters to ensure compliance with specific listing rules, especially on not offering units to prohibited parties.
• Written confirmations were given that no new units will be issued or placed with persons prohibited by SGX Rule 812(1).

Investor Warnings and Risk Factors

The announcement reiterates that this is not an offering document and does not constitute an offer to purchase or subscribe for units. The new units are not registered under US securities laws and will not be offered to the public in the United States, United Kingdom, or European Economic Area except to qualified institutional buyers.

Importantly, investors are reminded that the value of the units and the income derived from them can fluctuate. The units are not guaranteed by the manager or trustee, and there is no obligation for redemption or repurchase by the manager. Keppel REIT’s past performance is not necessarily indicative of future results.

Why This News Could Move Keppel REIT’s Share Price

• Significant Fundraising: The issuance of 114,954,000 new units and S\$113 million in proceeds could affect unit prices due to dilution and new capital deployment.
• Transparency Commitments: Enhanced disclosure on the use of proceeds may improve investor confidence if funds are channeled to accretive opportunities or prudent capital management.
• Market Perception: The ability to raise capital and secure SGX approval signals institutional support and financial flexibility, which could be viewed positively by the market.
• Regulatory Assurance: Strict compliance with SGX rules and exclusion of prohibited parties reduces regulatory risks and aligns with best practices in corporate governance.

Conclusion

Keppel REIT’s move to raise S\$113 million via a substantial private placement, with strict regulatory compliance and full transparency on fund usage, marks a potentially transformative moment for the trust. Investors should closely monitor subsequent disclosures regarding the specific deployment of these proceeds, as these details could have a meaningful impact on valuation and strategic direction.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information is based on public announcements and may not contain all material details. Please consult a licensed financial advisor before making any investment decisions. The writer holds no position in Keppel REIT and is not compensated for this article.

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