Pinned straw:
Macquarie Technology Group (ASX:MAQ) announced that they will be raising capital to fund further growth in their data centres business.
From their presentation:
Seems to be only an Institutional Placement with nothing for us private investors.
Maybe a little surprising that they are raising capital at this stage given that they still have $80m in undrawn debt facilities and $13m in cash. Although they did say that they will be paying down their debt at the last set of results. Perhaps taking the opportunity to reduce their debt with the cash raised?
FY23 outlook was also given in the presentation:
Total Depreciation and Capex are actually lower than previously forecasted. May be a short term boost to their overall profitability at the next set of results.
Full presentation here
Disc: Held IRL and on Strawman
Just going through the FY23 results as they were released after hours. Will do a more detailed post tomorrow when I have more time.
Just thought it was interesting to note that the capital raise was indeed used to pay off all the debt off the balance sheet as I suspected would be the case
