Bankers gather for cloud to break

Bankers scanning the Australian corporate market for the next hot spot have identified cloud computing as a major growth sector likely to shine over the next year.

AirTrunk finalised a $400 million capital raising last month after Goldman Sachs and TPG bought into the data storage centre. Demand was unprecedented and its adviser, Norton Rose Fulbright, worked through the January break to get the deal done. The funds will be used to pay for two big blocks of land in Sydney and Melbourne where data centres will be built in the next few years.

AirTrunk founder Robin Khuda’s market spiel was well received by investors and advisers had 70 applications from potential investors. A pitch of that kind would normally be lucky to get 15 approaches to sign confidentiality agreements but advisers say the unprecedented demand shows cloud computing is the next hotspot in Australia.

Data centre operator NextDC was touted as one of the best performing stocks in the sector of 2016. Similarly WiseTech’s market capitalisation has risen about $500m to be worth $1.5 billion and the stock jumped 16 per cent in its debut session in April last year. With NextDC’s and WiseTech’s success and AirTrunk’s capital raisings, bankers and lawyers have turned their attention to what’s next in the sector.

The next IT company to move is expected to be InfoTrack, the property title, company and personal search tool, which is being advised by Goldman Sachs.

InfoTrack is due to be floated by the end of the year but there is some speculation that the move to turn public could be delayed until early 2018.

Also doing the numbers and likely to list next year is Nuix, a tracking company used to identify personalities and links in the Panama Papers scandal. The business is worth about $1bn and was due to come to the market this year but the deadline has been extended for another year.

It is also understood that Pexa, the online conveyancer, is being prepared for sale by its owners, which advisers described as an elective bunch.