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 centers.
The data center 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 centers and ‘accelerated growth'.
The company announced its expansion plans in November, saying it was experiencing strong demand for its premium data center 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 center 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.