Keppel Infrastructure Trust - OCBC Investment 2024-09-05: Overhang Of Equity Fund Raising Lifted

• Keppel Infrastructure Trust announced on 28 Aug 2024 the results of its private placement exercise. 456.6m new shares were issued at S$0.438 per unit, which represents a 6% discount to its volume weighted average price (VWAP) of S$0.4662 per unit (on 26 Aug 2024). This is the highest end of the issue price range of S$0.426 to S$0.438 per unit. Accordingly, the total gross proceeds raised is ~S$200m.

Stub distribution to be paid on 18 Sep 2024

• - Read this at SGinvestors.io -
• The placement units were listed on 5 Sep 2024.
• See Keppel Infrastructure Trust's distribution dates – Stub distribution of 0.70 Singapore cents per unit for the period between 1 Jul 2024 to 4 Sep 2024 declared and payable to existing unitholders on 18 Sep 2024.

Combination of acquisition, equity fund raising (EFR) exercise, perpetual security issuance expected to be accretive on a pro forma basis

• - Read this at SGinvestors.io -
• 2.7% (S$5.4m) will be used to pay for fees and expenses incurred in connection with the placement, while
• the remaining 0.7% (S$1.4m) will be used to repay existing debt.

According to Keppel Infrastructure Trust, the acquisition of Ventura, issuance of S$200m of subordinated perpetual securities in early Aug, and EFR exercise would have resulted in a combined 6% and 4.1% increase in FY23 and 1H24 Keppel Infrastructure Trust's distribution per unit (DPU) to 4.09 and 2.03 Singapore cents, respectively, on a pro forma basis.

Net asset value (NAV) per Keppel Infrastructure Trust unit would have increased 33.2% as at 30 Jun 2024 to 19.9 Singapore cents per share.

Finally, Keppel Infrastructure Trust's net gearing would have improved 1 percentage point (ppt) to 39.4% as at 30 Jun 2024.

Revise fair value estimate to S$0.51

• Read more at SGinvestors.io.

Ada Lim OCBC Investment Research | https://www.iocbc.com/ 2024-09-05 SGinvestors.io

---