NextDC equity raising a big success

The $672m equity raising by NextDC received strong support

The $672m equity raising by data centre operator NextDC is understood to have received strong support, with the deal covered the night before it was announced on Thursday.

Working on the raise was investment banks Citi and RBC, while Cadence Advisory also offered assistance to NextDC.

Shares were sold at $7.80 each, a 15 per cent discount to their last close of $9.18. 

The company’s market value is $3.17bn and has surged since government restrictions on the back of the COVID-19 crisis that sees large portions of the Australian workforce now working on computers at home to curb the virus’s spread. 

The company issued 86.1 million securities, representing 25 per cent of all of its securities on issue, and the raise is by way of a placement. A share purchase plan to secure funds was also on offer. NextDC says the funds are to support the construction of a new data centre in Sydney and to offer flexibility to ensure its growth agenda will continue. 

Citi worked on the raise, as it also assisted Transurban in tapping the European bond market for €600m ($1.07bn).