Macquarie Technology Group (ASX: MAQ) today announced it is raising $130 million to expand its data centre business and has entered a trading halt. See below key details on the raise and HERE the company’s equity raising presentation.
Overview
- The A$130M is being sought via a non-underwritten institutional placement. The capital will strengthen Macquarie’s balance sheet and provide funding to pursue growth opportunities in its data centre portfolio. The institutional placement is also expected to significantly increase liquidity and free float.
- The company has a proven track record of delivering new data centres on time and on budget as data centre demand ramps up in Australia.
- The institutional placement positions the company to capitalise on the fast-growing cloud and AI megatrends.
- Macquarie has a high-quality revenue model and customer base, with over 90% of revenue coming from contracted monthly recurring revenue, and over 60% of billings of top 20 customers AA+ rated or better.
- The company has maintained nine consecutive years of EBITDA growth and reaffirms its FY23 EBITDA guidance of approximately A$102-104 million.
- Macquarie is developing a major data centre campus in Sydney’s North Zone, and has five data centres in operation with a pipeline for additional growth. 2/3 of the world’s largest public cloud providers leverage these facilities.
- The company is ‘Certified Strategic’ by the Federal Government under the Hosting Certification Framework, meaning it can provide enhanced privacy, sovereignty and security requirements for customers.
- Macquarie invests in data centre and cloud certifications that customers in regulated industries value highly, such as PCI DSS 3.2.1 for credit card payments; SCEC and PSPF requirements for Government workloads; and SSAE SOC2 for multinational customers.
Equity Raise Details
- Single tranche non-underwritten placement to sophisticated, professional, and institutional investors to raise gross proceeds of A$130M. Approximately 2.22 million new fully paid ordinary shares to be issued.
- Fixed offer price of A$58.50 per new share to be issued, a 7.6% discount to the last traded price of A$63.29; and 4.6% discount to the 5-day volume weighted average price of A$61.32.
- Financial services firm Canaccord Genuity (Australia) Limited is acting as Lead Manager on the raise.
- The company has entered a trading halt on Tuesday 13 June in line with the Placement launch, with results to be announced, halt lifted and recommencement of trading to take place on Wednesday 14 June.