Singapore-listed Keppel Infrastructure Trust (KIT) is set to launch an equity funding exercise to raise at least S$200 million ($153 million) via private placement of shares, according to an announcement.
KIT said it will issue between 456.6 million and 469.5 million new units to eligible institutional and other investors at a price range of between 42.6 cents and 43.8 cents per placement unit.
The price range represents 6-8.6% to the volume weighted average price (VWAP) of 46.62 cents per unit of all trades conducted on Monday, August 26.
About $193.2 million from the proceeds will be used to partially pay for the outstanding amount drawn on the bridge facility that was used to acquire Venture Motors.
In February, KIT acquired around 98.6% stake in Venture Motors, the largest bus service business in Victoria, Australia, for an enterprise value of A$600 million ($390 million).
Some $5.4 million will be used to pay any fees and expenses incurred from the private placement, while $1.4 million pay KIT’s existing debts. The remainder will repay existing debt and fund capital expenditures or potential acquisitions.
KIT said the issue price of the placement units will be determined by the joint lead managers, bookrunners, and underwriters following a book-building process.
DBS Bank, HSBC Singapore branch, OCBC, RBH Bank Berhard, and UOB have been appointed as lead managers, bookrunners, and underwriters for the placement.
As of the date of the announcement, Keppel Infrastructure Holdings Pte Ltd has a direct interest in 1.02 units, representing approximately 18.21% of the units in issue.
The placement is expected to close on August 28, with the issue price to be announced on the same date.
In the first three months of 2024, Singapore-listed asset manager Keppel garnered S$88 million in asset management fees, which rose 52% year-on-year thanks to higher contributions from its holdings in infrastructure, real estate, and connectivity.
The group raised about S$436 million in equity and completed about S$1.1 billion in acquisitions and divestments.
The total equity raised in the first quarter includes the first close of its China-focused Sustainable Urban Renewal (SUR) strategy that received 1.6 billion yuan (about $218 million) in commitments, while a half-stake acquisition of Aermont Capital for 356.9 million euros ($388 million) was among its notable transactions in the period.
