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Keppel DC REIT’s IPO heavily oversubscribed

SINGAPORE — Demand for Keppel DC REIT’s initial public offering units was so strong that the placement tranche was 24.4 times subscribed and the public portion was 9.6 times subscribed, the investment banks managing the sale said in a regulatory filing late today (Dec 11).

SINGAPORE — Demand for Keppel DC REIT’s initial public offering units was so strong that the placement tranche was 24.4 times subscribed and the public portion was 9.6 times subscribed, the investment banks managing the sale said in a regulatory filing late today (Dec 11).

The IPO of Keppel Telecommunications & Transportation’s real estate investment trust for its data centres will raise about S$513 million in the second-biggest listing in Singapore this year after Accordia Golf Trust’s S$758.6 million IPO in July.

Keppel DC REIT’s placement tranche of 207.4 million units attracted indications of interest for about 5.1 billion units, while the Singapore public tranche of about 53.8 million units received applications for 514.7 million units, the filing showed.

The IPO was priced at 93 cents per unit. Cornerstone investors such as Fortress Capital and Eastspring Investments will separately buy another S$270 million worth of units. The expected distribution yield is 6.8 per cent next year and 7.1 per cent in 2016.

Trading in the units will begin at 2pm on Friday.

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