HMC Capital hires more brokers for $2.6bn data centre float

HMC Capital managing director David Di Pilla. Picture: Jane Dempster

David Di Pilla’s HMC Capital has added five more brokers to the line-up of advisers working on the float of his $2.6bn data centre company set to make its debut on the ASX on December 16.

Added to the line-up is Bell Potter, CBA, E&P, NAB and Wilsons.

They join as co-lead managers and follow the appointment as underwriters, book runners and joint managers JPMorgan, Goldman Sachs, Macquarie Capital and UBS.

Also on the ticket as joint managers are Ord Minnett and Morgans.

The assignment will come as a welcome relief to the firms starved of work when it comes to initial public offerings this year, as investors have been cautious and sat on the sidelines.

But the understanding is that the demand is there for Mr Di Pilla’s latest deal, which will be largely supported by money from retail investors as has been the case with previous IPOs.

As part of the transaction, HMC Capital is raising $1.6bn for its latest listed satellite, DigiCo REIT, which has a market value at $2.6bn.

The group announced the purchase of iSeek data centres this week for $400m, adding to its $1.94bn Global Switch Australia data centres purchase.

The DigiCo REIT will have 13 data centre properties the group has purchased for about $3.9bn.

HMC Capital raised $300m to help fund the acquisition.

The structure is akin to HMC’s HealthCo and Wellness REIT that holds the Healthscope hospital assets, where the REIT which would be controlled by HMC Capital alongside a new institutional unlisted fund which would own part of the assets.

HMC Capital’s medium-term target overall is having $20bn of assets under management – almost doubling from its current level of $12.7bn.

HMC Capital was launched and floated with the former Masters Hardware properties sold by Woolworths before branching out with a listed healthcare real estate fund and daily needs fund.

It embarked on a $2.5bn merger with bulky goods operator Aventus.

Its other listed fund is its HomeCo Daily Needs REIT that owns neighbourhood shopping centres.

The other part of HMC Capital’s strategy has been to buy stakes in listed companies, including GrainCorp, Lendlease, Ingenia and his latest – an investment in Lifestyle Communities, acquiring 2.69 per cent and a cash-settled total return swap amounting to 4.5 per cent.

Chemist warehouse

Mr Di Pilla’s HMC has also been a major holder of Sigma and was instrumental in getting a backdoor listing of Chemist Warehouse into its pharmacy rival.

As reported by DataRoom online, HMC Capital has been offloading shares in Sigma following its announced merger with Chemist Warehouse which will take its market value to $30bn.

HMC has decreased its interest to 8.24 per cent from 10.64 per cent on November 7, the same day that Sigma had announced that the Australian Competition and Consumer Commission had given the green light to a merger.

Shares were sold at $1.85 and they closed at $2.50, with its market value at $4bn.

Mr Di Pilla has been selling over time.

Sigma revealed on April 2 that HMC Capital had divested 4 per cent of Sigma at between $1.20 and $1.31 a share.

The holding had reduced from 19.07 per cent to 15.03 per cent with the $80m-plus selldown.

Mr Di Pilla snapped up his shares at about 70c in 2022.

Other shareholders of Chemist Warehouse, about 200 people potentially including other members of the Gance and Verrocchi families, would have about $11.5bn of shares.

The founders, The Gance brothers and Mario Verrocchi, would have about 49 per cent of the business, with shares subject to escrow arrangements.

Chemist Warehouse’s pharmacy owners that have gained stock may opt to sell down their interest when their escrow arrangements expire which may see its market value fall from lofty heights.