- NEXTDC seeks to raise A$1.3 billion for multiple business development initiatives.
- The company maintains a steady financial forecast with underlying Ebitda between A$190 million to A$200 million, capital expenditure A$850 million to A$900 million, total revenue A$400 million to A$415 million, and net revenue A$296 million to A$304 million.
- A plan to raise A$1.321 billion through an entitlement offer is in place, selling shares at A$15.40 each.
- The funds from the entitlement offer are expected to assist in spending A$400 million on accelerating the built capacity of the S3, A$350 million in the development of the S4 data center, and A$300 million in the development of the S5 data center.
- Additionally, A$330 million will be spent on accelerating the built capacity of M2 and A$500 million on identified land acquisition opportunities in Asia-Pacific which are at various stages of evaluation.
- A$643 million is allocated for 2H alongside A$25 million for transactions costs associated with the Entitlement Offer capex and A$862 million in funding for general corporate purposes.
- The fund-raising processes involve a fully underwritten 1 for 6 pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares.
- After the completion of this offer, NEXTDC’s pro-forma tangible asset backing will be approximately A$5.1 billion and pro-forma liquidity of around A$3.4 billion.
- NEXTDC’s investment attractiveness is indicated by the 15 buy recommendations, 1 hold, and 2 sell.
A look at Nextdc Ltd Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Nextdc Ltd, a company that develops data centers in Australia, has garnered a mix of Smart Scores across different factors. While its Value and Dividend scores are moderate, the company shines in terms of Momentum, indicating a strong market performance. With Growth and Resilience scores also showing promise, Nextdc Ltd seems poised for continued expansion and stability in the long term.
Developing and operating carrier and systems integrator neutral data centers, Nextdc Ltd offers its customers the opportunity to utilize these centers as connectivity and content hubs. With a solid overall outlook highlighted by its high Momentum score, Nextdc Ltd appears to be well-positioned for growth and success in the evolving digital landscape.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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