🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Australia's HMC Capital to list data centre trust worth $A4 billion

Published 11/10/2024, 11:32 PM
Updated 11/11/2024, 01:15 AM
© Reuters

By Scott Murdoch

SYDNEY (Reuters) -Australia's HMC Capital will press ahead with the initial public offering (IPO) of its data centres business that would be worth $A4 billion ($2.64 billion), according to its regulatory filings on Monday (NASDAQ:MNDY).

The deal will aim to raise $A2.6 billion, the filings said, making it the largest deal in Australia since GQG Partners raised nearly $A1.2 billion in 2021.

HMC Capital said the DigiCo Real Estate Investment Trust (REIT) would have 13 data centres in its portfolio and 586 customers.

Its assets under management will stand at about $A4 billion and HMC Capital would invest a minimum of $A500 million that would give it an almost 19% stake in the business.

The IPO comes after HMC said it would spend $A400 million to buy Australian data centre operating platform iseek. iseek will roll A$250 million worth of the purchase price into the DigiCo IPO, HMC said in the regulatory filing.

HMC recently bought the colocation data centre operator Global Switch (NYSE:SWCH) Australia for A$1.937 billion and the asset will be a key business in the DigiCo portfolio.

The iseek acquisition had helped push HMC shares up by as much as 4% to a record high of A$10.79.

HMC's regulatory announcements did not specify a timeline for the IPO but local media said the REIT should be listed on Dec. 16.

($1 = 1.5170 Australian dollars)

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.