NextDC shares fall as trading resumes amid capital raise
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More news: NextDC shares fell 4.8% to $15.9 by 12:27pm AEDT following the completion of the institutional portion of its $1.32 billion capital raise. Trading of the shares had been halted ahead of the announcement of plans for the raise.
The company raised $937 million from institutional investors and is looking to raise another $385 million from retail investors later this week.
NextDC raises $937m from insto share sale
The news: Shares in NextDC will resume trading after the data centre operator completed the institutional portion of its entitlement offer, receiving strong support from shareholders.
The numbers: The company said it raised $937 million from the institutional portion of its one for six share sale to existing shareholders, with shares issued at 15.40 each and 99% take up.
The retail component to raise the balance of $384 million will open on 18 April. NextDC shares closed at $16.71 ahead of the trading halt.
The context: NextDC is using the proceeds from the $1.32 billion share sale, along with existing cash and bank balances, to bring forward development of three data centres in Sydney, one in Melbourne, land acquisition opportunities across Asia-Pacific, and on capital expenditure.
What they said: “We are delighted with the exceptional level of support from our existing institutional shareholders in this entitlement offer," CEO and managing director Craig Scroggie said.
"The raising ensures NextDC is positioned to continue to take advantage of the unprecedented growth in demand for data centre services that we are seeing across the market."
The source: ASX announcement
