Own NextDC shares? Here’s what’s happening with the ASX 200 tech share’s $618 million cap raise

Woman looking at her smartphone and analysing share price.Woman looking at her smartphone and analysing share price.

NextDc Ltd (ASX: NXT) shares have dropped back into the red in early afternoon trade today.

The S&P/ASX 200 Index (ASX: XJO) tech share is down 0.1%, having earlier posted gains of 0.3%.

Shares are currently changing hands for $11.77 apiece, up 31% in 2023. That gives the company a current market cap of $5.4 billion.

NextDC shares entered a trading halt on Thursday after management announced a $618 million capital raising.

Those funds will be used to develop two new data centres on recently acquired commercial property sites in Kuala Lumpur, Malaysia and Auckland, New Zealand.

Here’s how that cap raise is progressing.

What’s happening with the $618 million capital raising?

NextDC shares resumed trading today after the company updated the market on the $618 million fully underwritten 1 for 8 pro-rata accelerated non-renounceable entitlement offer. Shares are being offered for a discounted $10.80 apiece.

Management reported they had successfully raised about $416 million under the institutional component of the offer.

The company reported strong support for its institutional offer, with a take-up rate of some 99%. The remaining 1% was allocated to shareholders who bid for more shares than their existing entitlements.

The new NextDC shares issued under the institutional offer are expected to begin trading on Wednesday, 24 May.

The retail component of the offer opens this Thursday, 18 May and runs through to market close on Wednesday, 31 May. Eligible retail shareholders can participate at the same offer price of $10.80 per new NextDC share.

“We have received an exceptional level of support from our existing institutional shareholders in this entitlement offer,” NextDC CEO Craig Scroggie said.

Scroggie continued:

Having dedicated more than a decade building NextDC’s robust digital infrastructure platform across Australia, we are thrilled to undertake these new regional investments to kickstart our international operations.

Regional expansion allows NextDC to strategically leverage our invaluable customer relationships, our development expertise, and our operating credentials.

How have NextDC shares tracked longer-term?

As mentioned up top, NextDC shares have gained 31% so far in 2023.

Longer-term, the ASX 200 tech stock is up 55% in five years.

The post Own NextDC shares? Here’s what’s happening with the ASX 200 tech share’s $618 million cap raise appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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