Keppel DC REIT’s Strategic Equity Fund Raising: Potential Impacts on Shareholders

Keppel DC REIT has announced a significant equity fund raising initiative aimed at generating approximately S\$1 billion in gross proceeds. This strategic move, detailed in the recent announcement, is set to have several implications for current and prospective unitholders.

Key Points of the Announcement

• The transfer books and register of unitholders will close on 27 November 2024 to determine provisional allotments under the Preferential Offering and entitlements to distributable income up to that date.
• The Private Placement New Units are expected to be listed on the SGX-ST by 28 November 2024, marking a significant step in the fund-raising process.
• The expected Advanced Distribution per unit is estimated to range between 4.063 cents and 4.103 cents, including taxable income, tax-exempt income, and capital distribution.

Important Information for Shareholders

Shareholders should note that the Private Placement New Units will not be entitled to the Advanced Distribution and will not be eligible for the Preferential Offering. Additionally, they will rank pari passu with existing units after issuance, except for the Advanced Distribution.

Potential Share Price Sensitivity

The announcement includes several elements that could impact Keppel DC REIT’s share prices:

• The large-scale fund-raising effort and its success could influence market perception and investor confidence.
• Details regarding tax implications for different categories of unitholders might affect the appeal of the units to various investor groups.
• Important dates, such as the closing of transfer books and expected payment dates, could impact trading patterns around these times.

Tax Implications

The announcement outlines detailed tax implications for various categories of unitholders, including individuals, REIT ETFs, and foreign investors. Unitholders must be aware of their obligations and ensure timely completion of required forms to avoid unnecessary tax deductions.

Important Dates

Shareholders should keep the following dates in mind:

• 27 November 2024: Close of Transfer Books and Register of Unitholders.
• 16 December 2024: Deadline for returning tax declaration forms.
• 10 February 2025: Expected payment date for the Advanced Distribution.

The above timetable may be subject to change, and any modifications will be announced via SGXNET.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors should conduct their research or consult with a financial advisor before making investment decisions. Keppel DC REIT and its managers are not liable for any investment actions taken based on this information.