NextDC (ASX:NXT) was caught in a rush by investors eager to participate in its surprise $550 million equity issue to major shareholders on Tuesday night. However, by the close on Wednesday, there were signs the market wasn’t as enthusiastic as it had seemed earlier.
The data centre group informed the ASX on Wednesday morning that it would issue around 32.1 million new shares after the placement.
The placement shares were issued at $17.15 per share, representing a 3.9% discount to Tuesday’s last sale price.
The shares opened at $17.20 on Wednesday, briefly reaching a high of $17.23, but were driven down by selling pressure to a low of $16.60, marking a 6.9% drop from Tuesday’s close. The shares later recovered slightly, closing at $16.85.
NextDC stated that the proceeds from the capital raising would go towards acquiring new data centre development sites in Asia, as well as for general corporate purposes and transaction costs.
“The strong support for this placement highlights continued investor confidence in NextDC’s growth strategy and long-term vision,” said NextDC CEO and Managing Director Craig Scroggie.
“This successful placement ensures that NextDC is well-positioned to meet the growing needs of the cloud and AI ecosystems while seizing new opportunities in a rapidly evolving market.”
NextDC will now seek an additional $200 million through a share purchase plan (SPP), which will test the level of enthusiasm – if it exists – for data centre companies among smaller investors.
The full $750 million will still be raised, as any shortfall from the $200 million issue will be covered by institutions.
NextDC noted that the placement was strongly supported by both existing shareholders and new investors. Settlement of the new placement shares is scheduled for 13 September, with allotment and normal trading to commence on 16 September.
On Tuesday, NextDC also announced the launch of the SPP, which has a maximum cap of $200 million. Under this plan, eligible existing shareholders will have the opportunity to apply for up to $30,000 worth of new fully paid NextDC shares without incurring brokerage, commissions, or other transaction costs.
The SPP offer is set to open on 18 September and close on 4 October, with the results to be announced on 10 October.