NextDC (ASX:NXT) announces A$550 million institutional placement and A$200 million Share Purchase Plan for Asian expansion

NextDC Limited (ASX:NXT) is pleased to announce a capital raising initiative to fund its expansion into Asia. The company is undertaking a fully underwritten A$550 million institutional placement of new fully paid ordinary shares and a non-underwritten Share Purchase Plan of up to A$200 million. The proceeds from this capital raising will be utilized for the acquisition of new data centre development sites in Asia, in addition to general corporate purposes and transaction costs.

Executive Commentary on Asian Development and Capital Raising

Mr Craig Scroggie, CEO and Managing Director of NextDC, expressed enthusiasm about the company's expansion efforts in Southeast Asia. He highlighted the approval of the investment application for a new hyperscale data centre in Bangkok by Thailand's Board of Investment and the expected practical completion of the JB1 development in Malaysia. Mr Scroggie emphasized the company's commitment to delivering world-class Tier IV and built-to-suit data centre solutions across the region. He also noted the unprecedented pace of market dynamics driving demand for NextDC's digital infrastructure platform.

Summary of Capital Raising and Future Guidance

The capital raising initiative by NextDC aims to fund the acquisition of new data centre development sites in Asia and support the company's expansion efforts in Southeast Asia. The targeted Asian development sites are expected to expand the company's data centre development pipeline, adding to NextDC's planned capacity of more than 1GW based on its existing portfolio of data centre sites. The company's updated FY25 guidance includes net revenue in the range of A$340 million to A$350 million, underlying EBITDA in the range of A$210 million to A$220 million, and increased capital expenditure in the range of A$1,300 million to A$1,500 million. NextDC reported liquidity of A$2.7 billion as at 30 June 2024, providing a strong financial position to support its expansion plans.