Data centre startup NEXTDC plans $40m IPO

Stuart Corner
Tuesday, 09 November 2010 12:53

IT Industry - Listed Tech

NEXTDC, the company started in May by Pipe Networks' cofounder Bevan Slattery with a $20m cash injection to build and operate data centres, has announced plans to raise $40m through an IPO and list on the ASX.

The company expects to complete its capital raising and list on ASX in mid-December 2010. Forty million $1 shares will be offered. However these will not be available to the general public. The capital raising - underwritten by Joint Lead Managers, Moelis & Company and RBS Morgans - comprises a broker firm offer and a priority offer.

In addition to the initial equity of $20m and the $40m IPO, the company has secured a credit approved finance facility of $40m provided by an, un-named, major Australian bank.

The IPO will give Slattery an instant paper profit of $20m: on completion he will hold 40 million of the company's 80 million shares.

NEXTDC has already secured sites for data centres in Melbourne and Brisbane and says it plans to expand into Sydney following its IPO. It aims to have the initial fit-out of its Brisbane data centre completed by March 2011 and Melbourne by November2011. The Brisbane facility is expected to have a 'technical area' of 2,250 square metres and Melbourne 6,000 square metres.

On completion of the IPO NEXTDC says it will have sufficient equity funding to complete refurbishment of the Brisbane facility, the design and construction of the Melbourne facility, to commence the technical fitout of both facilities and to lease or acquire a facility in Sydney.

However by the time the initial technical fitout of all three centres is complete the company expects to have fully drawn down its $40m loan funding. It intends to fund the fitout the entire technical space of all three centres with a mix of additional debt and/or equity and, if available, cashflow from operations.