Brokers to be appointed for HMC’s DigiCo float

HMC Capital last week announced the acquisition of the Global Switch Australia data centres for $1.9bn.

Retail brokers could be appointed as early as this week for HMC Capital’s $2bn initial public offering for its DigiCo Infrastructure REIT.

Expectations are that retail shareholders will largely be targeted for the float.

On earlier IPOs for its funds, HMC Capital has used Morgans and Ord Minnett, which should both be well-placed for this deal.

HMC Capital last week announced the acquisition of the Global Switch Australia data centres for $1.9bn. This will be part of a new listed digital infrastructure fund managed by the David Di Pilla-run HMC Capital listed funds management vehicle.

While no timing has been offered on the float, most expect it to happen this year.

As first flagged by DataRoom, Goldman Sachs and JPMorgan are working on the listing, along with UBS and Macquarie Capital.

Their first assignment has been to raise $300m for HMC Capital.

As announced last Thursday, this was a fully underwritten institutional placement at an issue price of $8.75 a share, a 5 per cent discount to the last traded price of $9.21.

Global Switch Australia has two major data centres on the western edge of Sydney’s central business district comprising 73,000sq m.

The firm has 86 customers with an average lease length of 3.4 years.