On 16 Sep 2019, Keppel DC Reit announced that it is to raise $473.8m to partially fund data centre acquisitions, via private placement of 135 million new units in Keppel DC Reit at an issue price that is between $1.703 and $1.744 per unit.
This is to partially pay for the acquisition of two data centres, one of which Keppel Infrastructure Trust (KIT) has a 51 per cent stake in.
Typically, price drops after a private placement. However, Keppel DC Reit’s price jumped up 17% within the same week.
What does this mean to you?
I like data centres because their clients are very sticky. If you think so too, then hold on to it if you already have Keppel DC Reit, or accumulate on dips if you’re looking to get it.
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