Story image

NextDC flush after successful $120m capital raising

17 Dec 15

NextDC has successfully completed its latest round of capital raising, netting $120 million of additional funding the company says it needs for two new data centres.

The data centre operator completed the retail component of the capital raising last Friday, with about $30 million raised. However, about three million new shares were not taken up under the retail entitlement offer, and will be allocated to sub-underwriteres for the offer.

NextDC says it received ‘strong support’ from existing retail shareholders, with a total take-up of 77%.

The instituional component of the entitlement offer closed in November and was oversubscribed. NextDC says the component raised around $40 million, while an institutional placement, which also closed in November, raised $50 million from existing and new investors.

The $120 million capital raising joins other funding gained from a Notes II offer along with cash and undrawn senior debt, providing NextDC with more than $320 million to fund the data centres and ‘accelerated growth’.

The company announced its expansion plans in November, saying it was experiencing strong demand for its premium data centre services and its existing Brisbane and Melbourne facilities were reaching capacity constraints.

At the time, NextDC said it had advanced discussions with further large customer opportunities across the existing data centre footprint.

The company has estimated an outlay of $175 million to $200 million for the two new facilities in the first 12 to 18 months.

The new Brisbane facility, B2, is expected to have an initial capacity of 2MW+, with a target total capacity of approximately 25MW.

Data centre cybersecurity actions that most people overlook
Schneider’s Steven Carlini discusses ways to improve data centre cybersecurity that most people don’t think of until it’s too late.
Alibaba Cloud showcases commitment to Hong Kong
The company’s service capability in Hong Kong has doubled since it established its first data centre in the city in 2014.
5 tips to reduce data centre transceiver costs
Keysight Technologies' Nicole Faubert shares her advice on how organisations can significantly reduce test time and cost of next-generation transceivers.
The new world of edge data centre management
Schneider Electric’s Kim Povlsen debates whether the data centre as we know it today will soon cease to exist.
Can it be trusted? Huawei’s founder speaks out
Ren Zhengfei spoke candidly in a recent media roundtable about security, 5G, his daughter’s detainment, the USA, and the West’s perception of Huawei.
SUSE partners with Intel and SAP to accelerate IT transformation
SUSE announced support for Intel Optane DC persistent memory with SAP HANA.
Inspur uses L11 rack level integration to deploy 10,000 nodes in 8 hours
Inspur recently delivered a shipment of rack scale servers of more than 10,000 nodes to the Baidu Beijing Shunyi data center within 8 hours.
How HCI helps enterprises stay on top of data regulations
Increasing data protection requirements will supposedly drive the demand for Hyper-Converged Infrastructure solutions across the globe.