Infratil raising $1.07b via share sale to fund growth

The news: Infrastructure investor Infratil has announced a share sale of NZD1.15 billion ($1.07 billion) to fund data centre operator CDC’s growth as well as expand investment in renewables, digital and healthcare platforms.

The numbers: The equity raising will consist of an institutional placement of NZD1 billion, and a non-underwritten retail offering of NZD150 million. The placement comprises of 98.5 million new shares at a price of NZD10.15 each.

Infratil owns 47.99% stake in CDC, which has been one of its most successful investments.

The context: The dual-listed Infratil said it would commit $600 million of the proceeds to fund its pro-rata share of estimated funding required by CDC over the next two years to execute its medium term development pipeline.

Infratil CEO Jason Boyes said CDC had continued to see a surge in demand for capacity on the back of cloud adoption and significant investments in generative artificial intelligence, with negotiations with customers ongoing for more than 400 MW of capacity over multiple sites.