Australian data center provider NextDC announced that it has successfully raised approximately AUD 550 million through the issuance of approximately 32.1 million new shares. Further to the company's ASX announcement dated September 10, 2024, the placement shares were issued at AUD 17.15 per share, representing a 3.9 percent discount to Tuesday's close.
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Proceeds for Asian Data Center Expansion
The proceeds from the capital raising will be used for acquiring new data center development sites in Asia, as well as for general corporate purposes and transaction costs. The newly acquired Asian sites are expected to expand the company's data center development pipeline in Asia, which in due course will also add to NextDC's planned capacity of over 1GW based on its existing portfolio of data centre sites, the exchange filing said.
"NextDC continues to see opportunities in the growing cloud and AI-led demand for digital infrastructure throughout its core Asian markets, which it believes creates strong tailwinds for NextDC," the company said.
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Investments and Future Developments
Additionally, NextDC said it is actively evaluating and planning its expansion into new markets, including site evaluation and negotiation in Bangkok, Thailand (BK1) and Johor, Malaysia (JB1).
In FY24, NextDC received foreign investment approval from Thailand's Board of Investment (BOI) to build a new hyperscale facility in Bangkok. Part of the capital raised will be used to develop this facility once a suitable site has been acquired.
Meanwhile, the planned JB1 development is expected to expand the company's presence in Malaysia, with the completion of KL1 anticipated in FY26.
NextDC said, "While the company is already well-placed from a liquidity perspective to continue accelerating its development activities, it is becoming clear that opportunities for value-accretive investments in the near term will continue to grow in line with our record pipeline and strong demand for cloud and AI services."
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Support from Shareholders and New Investors
The placement received strong support from NextDC's existing shareholders and new investors, the exchange filing said. Settlement of the new placement shares is expected to occur on September 13, 2024, with allotment and normal trading starting on September 16, 2024.
