Data centre start-up NextDC, led by former Pipe Networks chief Bevan Slattery, has successfully raised $33.6 million in capital in order to invest in new property and equipment.
The company has returned to the market only three months after it completed a successful float on the ASX, raising $40 million.
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The capital raising was facilitated by RBS Morgans and Moelis & Company; the same companies that launched NextDC on the ASX in December.
NextDC has confirmed it will offer institutional and conditional share placements worth $16.8 million each, with Moelis and RBS Morgans both taking part.
RBS Morgans client adviser Simon Bond told The Australian Financial Review the data centre and tech sectors are “far and away” the most undervalued areas of investment in the Australian market.
The institutional placement will be completed on March 24 while the settlement for the conditional placement will take place on April 28.
The company also said it will offer up to $15,000 of shares to eligible shareholders through a share purchase plan.
The pricing will be set at $1.40 – 12.5% below the last closing price of $1.60, recorded on March 16.
The price of $1.60 represents a 60% gain on the company’s initial share price of $1 upon listing in December.
Approximately $12 million of the funds will be used for the purchase of a property in Sydney, while $23.6 million will be used for “additional expansion” at its existing properties, along with new growth opportunities.
The remaining $3 million will be used for costs and other working capital.
Last week, NextDC identified a property in Sydney totalling 5,000 square metres, and also said it is exploring another site to cope with demand. It has also identified Perth and Canberra as possible growth areas.
Slattery, who has refused to comment directly on the company’s plans, has already pumped $20 million of his own money into the company.
He said last year he expects the NextDC venture to thrive as demand for cloud-based and software-as-a-service applications grows.
The first site in Melbourne is expected to go live in May, with a site in Brisbane to go live this November.