DJ NextDC Raising A$1.32 Billion Amid Record Data-Center Demand -- UpdateNXT$16.71$0.00 (0.0%)$16.71$16.46

11 Apr 2024 08:48:141 ViewBy Stuart Condie

SYDNEY--Australian data-center operator NextDC is raising 1.32 billion Australian dollars (US$860.4 million) of equity to accelerate several developments as the global shift to cloud computing drives record demand for its services.

The ASX-listed company on Thursday said that it would use the proceeds of a fully underwritten entitlement offer to accelerate the development and fit-out of centers in its core Sydney and Melbourne markets. The initiative is part of NextDC's broader planned capital outlay, which includes expansion into Asia-Pacific.

The offer, which includes institutional and retail components, involves the issue of shares on a 1-for-6 pro-rata basis at A$15.40 each. NextDC shares last traded at A$16.71 and are up 22% so far in 2024.

NextDC reaffirmed the FY 2024 revenue, earnings and capital expenditure guidance issued in February and said it is experiencing record demand. It added that it expects forward orders to convert into billings over the five fiscal years through FY 2029, driving growth in revenue and earnings.

"NextDC continues to see significant growth in demand for its data-center services underpinned by powerful structural tailwinds," Chief Executive and Managing Director Craig Scroggie said.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

April 10, 2024 18:48 ET (22:48 GMT)

Continues to sell capacity and subsequently revenues by ~31% in FY18

Strong industry tailwinds

Provided FY19 outlook of ~20% growth in revenues over FY18

High risk long term hold

The following statement was from the most recent CEO presentation which, if correct, could make today's share price cheap??

The data centre industry is experiencing unprecedented acceleration to support the extraordinary shifts to cloud, the internet of things, Artificial Intelligence and other exponential technologies. Our industry will more than double in the next 5 years; and we are incredibly well positioned to take advantage of that growth, as we more than double the size of the company. You will hear and continue to see this generational transition referred to as the 4th industrial revolution. We are incredibly well positioned to continue to lead the development of our national critical infrastructure platform for the digital age.

7/9/18

Solid FY18 results gives confidence

Sector tailwinds

New data centre has been bought forward (could be an indication of strong demand)

All in all with the recent SPP at $6.81 and current share price at $6.00 this could be an opportunity.

NXT is a high risk play. If no major contracts announced in prior to next report I'll be a seller however if they are the shares could be in value territory at $6.