Aussie Broadband seeks $124m

More investors are being invited to join Aussie Broadband’s journey to becoming a $1bn business less than a year into its listing.

Aussie Broadband managing director Phillip Britt.

More investors are being invited to join Aussie Broadband’s journey to becoming a $1bn business less than a year into its listing.

The ASX-listed NBN services provider, valued at $881m, is raising about $124m from institutional and retail investors.

The Victorian internet services business, founded by managing director Phillip Britt and CTO John Reisinger, listed at $1 per share in October last year and ended Monday’s trade at $4.63.

The business has received commitments from institutional investors for $114m at $4 per share.

Retail shareholders can participate in a $10m share purchase plan.

The funds will be used to support acquisitive growth by mergers and acquisitions, new business product and technology development, and/or increase technology development to improve network efficiency and fund the growth of fibre and network assets, Aussie Broadband told investors on Wednesday.

It has been a busy week for the 13-year-old group, which announced a strategic fibre swap agreement with VicTrack on Monday, increasing its footprint.

It comes as more groundwork is laid this financial year to complete a 1200km-plus fibre network, which will deliver more than $15m in savings in the next financial year.

Aussie Broadband’s revenues surged 84 per cent to $350m in the 12 months to the end of June, when it had more than 362,000 residential customers and 24,000 businesses using its services.

The national business, backed by Citicorp Nominees, Digital Interworks (an entity associated with Mr Britt) and Intertubes (related to Mr Reisinger), is also scouting for acquisitions, with at least one purchase likely by December.

The group’s strategy remains focused on “changing the telco game” in a competitive market and extending broadband access into regional and rural Australia.

“We are very encouraged by the strong level of support from new and existing institutional, sophisticated and professional investors,” said managing director Phillip Britt.

“We greatly appreciate the backing of existing shareholders who participated in the placement and welcome new shareholders that have joined the register as part of the equity raise.”

He said there were “promising opportunities” to execute transformational acquisitions in the business segment that will complement and improve Aussie Broadband’s position in the market.

Originally published as Aussie Broadband seeks $124m