DigiCo REIT shares tumble again after IPO
Make us a preferred source
Make us a preferred source on Google
The news: Shares in DigiCo Infrastructure REIT have tumbled for the second straight session, after it debuted on the market on Friday.
The numbers: DigiCo shares were down 11% to $4.03 in early trading on the ASX.
The stock had lost 9% on its first day of trading on Friday, after investors purchased shares at an offer price of $5 each.
Shares in investment manager HMC Capital were down 10% to $10.10 each.
The context: The poor performance by the Australian data centre landlord and operator likely reflects market concerns over valuations in the red-hot data centre segment.
Ahead of the IPO, Morningstar analyst Lochlan Halloway indicated that DigiCo shares were overvalued, assigning a fair value estimate of $3.40 per share.
Last month, investment manager HMC Capital increased the size of the Digico REIT IPO to $2.75 billion citing significant demand from institutional and retail investors.
The listing followed a series of data centre acquisitions by HMC earlier this year, but the business is expected to face increased competition longer term.
The source: ASX announcement
