Keppel Infrastructure Trust (KIT) has raised $525 million in the largest fund-raising deal via equity this year.
The business trust will use the funds to acquire a 51 per cent stake in the Keppel Merlimau Cogen, which operates a power plant on Jurong Island.
It raised the capital through a private placement of 812.694 million units priced at 52 cents apiece. This was a 6.15 per cent discount to the units' adjusted volume-weighted average price.
The private placement drew strong institutional support and was two times subscribed, KIT said when announcing the deal last night.
As part of this fund-raising exercise, KIT will also conduct a non-renounceable preferential offering that will allow existing unitholders to subscribe to one new unit for every 13 owned at a price of 51.5 cents per unit. The offer ends at 5pm on May 28.
The equity deal was the largest in Singapore this year and represented around 36 per cent of KIT's outstanding units before the fund raising, KIT said.
The trust, which has a portfolio of power plants and infrastructure companies, was renamed from CitySpring Infrastructure Trust, which merged with KIT on May 18.
Mr Khor Un-Hun, chief executive of KIT's trustee manager Keppel Infrastructure Fund Management, said: "We are deeply encouraged by the strong investor interest in our equity fund raising.
"The increase in free float and institutional shareholder base will help KIT enhance the liquidity of its units and its ability to raise additional capital to finance future growth opportunities."
This article was first published on May 22, 2015.
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