KEPPEL Infrastructure Trust (KIT) has closed its private placement at S$0.438 apiece with 456.6 million new units issued, representing the top end of the price range proposed the day before.
The trustee-manager on Wednesday (Aug 28) said the placement was 2.5 times subscribed, with demand from new and existing institutional investors, as well as accredited investors.
The issue price of S$0.438 represents a 6 per cent discount to the volume-weighted average price (VWAP) of S$0.4662 per unit, based on trades done on the Singapore Exchange (SGX) during the preceding market day.
For illustrative purposes, the issue price represents a 4.6 per cent discount to the adjusted VWAP of S$0.4592 per unit, after subtracting a distribution of S$0.007.
The placement will raise some S$200 million.
About 96.6 per cent, or S$193.2 million, of the proceeds will be used to partially repay S$391.8 million drawn down from a term loan facility of S$400 million. This was used to fund the acquisition of Australia’s Ventura Motors in June.
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About S$5.4 million – 2.7 per cent of the proceeds – will be used to pay for fees and expenses of the placement, while the remaining proceeds will be used to repay existing debts.
The new units will be listed on SGX on Sep 5.
DBS Multi-Assets Investment has been allocated about 6.1 million new units under the placement.
Keppel, through its wholly owned subsidiary Keppel Infrastructure Holdings, is a substantial unitholder of KIT.
Units of KIT ended flat at S$0.465 on Aug 26 before a trading halt. It will resume trading on Wednesday.
