SINGAPORE - Keppel Infrastructure Trust (KIT) has upped the size of its latest equity fundraising to $500.8 million from $450 million, following strong demand from investors, it said on Friday (March 15).
The funds will be raised via a placement of units, and a preferential offering. The placement consists of 680.3 million units at a price of $0.441 apiece, raising gross proceeds of about $300 million, as well as a preferential offering to entitled unitholders on a non-renounceable basis of 118 preferential offering units for every 1,000 existing units held as at March 22, 5pm. The preferential offering has come down to 455.31 million preferential units priced at $0.441 apiece, to raise about $200.8 million.
The bulk of the proceeds will go towards partially repaying a loan facility taken for the A$770 million (S$737.6 million) acquisition of Ixom HoldCo, a water treatment chemicals distributor. About $490.7 million will be set aside for the partial repayment of the loan, while about $10.1 million will be used to pay for fees and expenses incurred on the fundraising exercise.
The issue price of $0.441 represents a discount of 9.8 per cent to the volume-weighted average price of $0.4890 per unit, for the full market day on March 12, 2019 and on March 13, 2019 up until 3.03pm. The total new units to be issued translate to about 29.4 per cent of KIT's outstanding units as at Friday.
Keppel Infrastructure Holdings, which has an 18.2 per cent direct interest in KIT, will subscribe for the required number of units to maintain its percentage unitholding after the placement.
The expected date and time of listing of the placement units on the Singapore Exchange is on March 25, 2019 at 9am.
The preferential offering will open on March 27, 2019 at 9am, with entitled unitholders able to accept and apply for excess preferential offering units up till April 4, 2019. These units are expected to begin trading on April 15, 2019 at 9am.
KIT will lift the trading halt of its units to allow trading on Friday morning.