Australian data centre operator NEXTDC launched a A$1.32 billion ($859.45 million) capital raising on Thursday, one of the largest of its kind in the region this year, as the company looks to build out its data storage capabilities.
The deal is being carried out through a fully underwritten one for six pro-rata accelerated non-renounceable entitlement offer, according to a regulatory filing.
The new shares will be priced at $A15.40 per share, which is a 6.8% discount to NEXTDC’s theoretical ex-rights price of A$16.52.
Capital raisings of more than A$1 billion have been rare in Australia and across most of Asia as financial markets remain volatile due to global interest rate uncertainty and ongoing geopolitical tensions.
NEXTDC said the proceeds would be used in fast tracking the development of new data centres in Sydney and building up capacity in its existing Melbourne operations.
The company reaffirmed its guidance that net revenue should reach A$296 million to A$304 million this financial year ending June 30, while underlying earnings would be between A$190 million to A$200 million.
“We believe that the raising should be well taken up, and the event doesn’t materially change our view on the company or its valuation given we had already been incorporating something similar in our forecasts,” said E&P Capital analyst Paul Mason.
NEXTDC shares were in a trade halt on Thursday and closed the previous session at A$16.71. The stock is up nearly 22% so far in 2024, as data and tech stocks in Australia are favoured among investors.
Morgan Stanley and Royal Bank of Canada have fully underwritten the capital raising.
Reuters