Triple Point’s private equity business Digital 9 Infrastructure Plc (LON: DGI9) has raised £275 million (US$370.56 million) as part of its placing programme which was “significantly over-subscribed” as investor interest in digital infrastructure continues to increase.
The upsized equity was raised through the issue of 255.8 million shares at 107.5p per share. The company’s total shares portfolio stands now at 722.5 million with £750 million ($1,010 million) in raised capital including its IPO in the London Stock Exchange (LSE) and subsequent incremental equity raises.
The proceeds will be used to acquire further assets in line with the company’s investment objective, identified in the company’s pipeline of investment opportunities at IPO, mainly in the UK, the Nordics, the Middle East, North America, and Asia-Pacific.
Notwithstanding the increased size of the placing, applications for the new ordinary shares significantly exceeded the total number of shares to be issued and accordingly a scaling back exercise has been undertaken.
Certain directors, including Jack Waters, Keith Mansfield and Lisa Harrington, have subscribed for, in aggregate, 57,208 new ordinary shares.
In addition, Thor Johnsen and Andre Karihaloo, members of the investment manager’s team, Triple Point Investment Management LLP, have subscribed for, in aggregate, 209,301 new ordinary shares.
These respective subscriptions have been made either via the placing or via a direct subscription with the company at the placing price.
Jack Waters, Chair of Digital 9 Infrastructure plc, said: “The drivers of digital infrastructure are increasing rapidly as more of our lives move online, fundamentally changing the way we work, shop and socialise. These long-term changes in behaviour have been accelerated by, or result from, the Covid-19 pandemic as well as more fundamental trends in data usage.
“Our existing shareholders and new investors have identified the opportunity that investing in D9 represents – a means for them to participate in this exciting sector at a critical point in time. We welcome their support and look forward to the next step of D9’s journey as it continues to invest in a diversified portfolio of digital infrastructure assets.”
Akur Limited trading as Akur Capital is acting exclusively as Financial Adviser to the Company and J.P. Morgan Securities PLC (which conducts its UK investment banking activities as J.P. Morgan Cazenove) is acting as Global Coordinator and Sole Bookrunner on the Placing.
Digital 9 has to date invested £423 million ($570 million) in subsea cables and data centre infrastructure, including the acquisitions of Aqua Comms, subsea cable EMIC-1, and Verne Global.
The Plc’s short term asset targets for acquisition include a portfolio of US, UK and northern European data centres, a UK terrestrial fibre platform, and a UK wireless infrastructure business (with a specific focus on 5G), in a potential investment of more than £670 million ($902.8 million).
In the long run, the company has identified a 12-month pipeline of £1.85 billion ($2.49 billion) of opportunities across subsea cables (£510 million; $687 million), data centres (£350 million; $471.6 million), towers and small cells (£365 million; $491.8 million) and terrestrial fibre systems (£625 million; $842.1 million).