Home Data Centres NEXTDC $281 million share raising to fund data centre expansion
Craig Scroggie, NEXTDC Craig Scroggie, NEXTDC Featured

Data centre operator NEXTDC is planning to acquire three new commercial property sites for future data centre developments in Sydney, Melbourne and Perth, which it will fund through a $281 million new share placement and purchase plan.

The ASX-listed national data centre operator says the equity raising will consist of a fully underwritten $281 million institutional placement of new shares and a non-underwritten share purchase plan.

NEXTDC (ASX: NXT) says the new sites as well as the Perth base building development works are incremental to its existing funding envelope.

According to NEXTDC, it continues to experience very strong demand for its premium data centre services and is in advanced negotiations in relation to several large customer opportunities, which further improves its visibility and “increases confidence in the size and nature of the long-term demand for its data centre services”.

Chief executive Craig Scroggie says NEXTDC has taken the strategic decision to prepare for future growth and to mitigate the risks of the company running out of new capacity in its key markets by purchasing the new sites – allowing it to quickly respond to market demand and to “optimally sequence the deployment of capital and  construction of the new data centre facilities over the longer term”.

"We are incredibly excited by the breadth and depth of these new investments that will further support the exponential growth of the digital economy in Australia,” Scroggie said.

“Over time, these new infrastructure developments are expected to be the largest of their kind in Australia. These important strategic investments will extend our world class operation of Tier IV data centres across the Australian landscape.”

NEXTDC says it is advancing the planning and development of the new P2 facility in Perth with a planned IT capacity of 20MW and plans to commence development of the site in 1Q19. Practical completion is expected in 1H FY20, ensuring continuing available capacity in Perth.

With the capital raising, NEXTDC is offering eligible shareholders in Australia and New Zealand the ability to subscribe for up to $15,000 of new shares each under the non-underwritten SPP.

The placement to institutional investors to raise $281 million consists of a $131 million general placement and a $150 million cornerstone placement to UniSuper.

NEXTDC says the placement is fully underwritten by the sole lead manager and bookrunner, Citigroup Global Markets Australia, which will conduct a variable price bookbuild with existing institutional shareholders and new eligible institutional investors to determine the issue price for the general placement.

The general placement has an underwritten floor price of $6.43 per share, representing a 3.0%  discount to 5-day VWAP and 5.6% discount to the last close.

NEXTDC says UniSuper has agreed to take-up $150 million of the cornerstone placement at a 2.5% premium to the Placement Price.

NEXTDC Directors have committed to take up their full entitlement of $15,000 worth of shares under the SPP.

The placement is to be conducted on 17 April and the SPP will open on 27 April and close on 15 May.


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Peter Dinham

Peter Dinham is a co-founder of iTWire and a 35-year veteran journalist and corporate communications consultant. He has worked as a journalist in all forms of media – newspapers/magazines, radio, television, press agency and now, online – including with the Canberra Times, The Examiner (Tasmania), the ABC and AAP-Reuters. As a freelance journalist he also had articles published in Australian and overseas magazines. He worked in the corporate communications/public relations sector, in-house with an airline, and as a senior executive in Australia of the world’s largest communications consultancy, Burson-Marsteller. He also ran his own communications consultancy and was a co-founder in Australia of the global photographic agency, the Image Bank (now Getty Images).


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