This article is from the Australian Property Journal archive
SPURRED by the generative AI and cloud services booms, ASX-listed data centre operator NextDC has launched a $1.32 billion raising to develop and boost facilities in Sydney and Melbourne.
The fully underwritten 1 for 6 pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares is priced $15.40 per new share, a 6.8% discount to its previous closing price.
NextDC said it is experiencing record demand for its data centres, “underpinned by powerful structural tailwinds”.
“Amid this backdrop, we have decided to bring forward the development and fit-out of key assets in Sydney and Melbourne to ensure we are able to meet this growth in demand, continue to support our customers, and ensure the company is well positioned to take advantage of the diverse range of opportunities expected to present over the medium term.”
The works will go towards accelerating built capacity at its S3 Sydney facility, fast-tracking the first data centre building and infrastructure at S4 Sydney and stage one building works at S5 Sydney, and accelerating capacity of M2 Melbourne, triggering the next stage of building expansion works.
In calendar 2023, NextDC’s contracted utilisation increased 77% to 149.0 megawatts, and the company has a forward order book of 68.8 megawatts, which it projects will convert into billings across FY25 to FY29, driving future growth in revenues and earnings.
Following completion of the entitlement offer, NextDC will have pro-forma tangible asset backing of $5.1 billion and pro-forma liquidity of $3.4 billion.
NextDC booked a 31% increase in first-half revenue to $209.1 million in February as it continued to build up the capacity of its facilities. Its portfolio includes data centres operating or being built in Sydney, Melbourne, Brisbane, the Sunshine Coast, Perth, Canberra, Darwin and Port Hedland. It has plans to expand into Malaysia, New Zealand, Singapore and Tokyo.
NextDC reaffirmed its FY24 guidance, including total revenue in the range of $400 million to $415 million, as well as underlying EBITDA in the range of $190 million to $200 million.
