Keppel DC REIT Announces S\$1 Billion Equity Fund Raising and Advanced Distribution Details

Keppel DC REIT has announced a significant move with the launch of an equity fund raising to generate gross proceeds of approximately S\$1 billion. This announcement, made on November 19, 2024, is poised to potentially impact share values as it encompasses a comprehensive plan including the issuance of new units and detailed distribution strategies.

Key Points of the Announcement

• The Transfer Books and Register of Unitholders will be closed on November 27, 2024, to determine the provisional allotment of new units under the Preferential Offering and entitlements to distributable income from July 1, 2024, to November 27, 2024.
• The Private Placement New Units are expected to be listed on the SGX-ST on November 28, 2024.
• Advanced Distribution is estimated to be between 4.063 cents and 4.103 cents per Unit, consisting of taxable, tax-exempt, and capital distribution components.

Important Information for Shareholders

Shareholders need to be aware of several important details that may influence their investment decisions and potentially affect share prices:

• The Advanced Distribution will only apply to Existing Units and is estimated to comprise taxable income, tax-exempt income, and capital distribution.
• The Preferential Offering New Units will not be eligible for the Advanced Distribution but will participate in all distributions thereafter.
• Tax implications are outlined, with Qualifying Unitholders being exempt from tax deductions under certain conditions, while others may face a tax deduction rate of 17%.
• Forms must be completed and returned by December 16, 2024, to ensure the correct tax treatment of distributions.

Potential Impacts on Share Price

The announcement could influence Keppel DC REIT’s share price, given the substantial equity fund raising and the strategic approach to distributions, which aim to ensure fairness to existing unitholders. Investors should consider the potential dilution of existing shares and the implications of the new units being issued.

Important Dates

• Last date for units to be quoted on a “cum-distribution” basis: November 25, 2024
• Closing of Transfer Books and Register of Unitholders: November 27, 2024
• Payment of Advanced Distribution: On or around February 10, 2025

Please note that the above timetable is subject to change, and any modifications will be announced separately.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors should perform their own research or consult with a financial advisor before making investment decisions. The past performance of Keppel DC REIT is not indicative of future performance, and investment in REITs carries risks, including the potential loss of principal.