D/9 Digital Infrastructure logo

Source: Investment Week UK

Digital 9 Infrastructure has raised £275m following the results of its placing programme which was significantly over-subscribed.

The investment firm which invests in a range of digital infrastructure assets raised £275m through the issue of 255.8m shares at 107.5p per share. The issue price represents a 4.0% premium to the NAV as of 30 June and an 8.7% discount to the pre-announcement closing share price of 117.8p.

Directors including Jack Waters, Keith Mansfield and Lisa Harrington have subscribed for over 57.2k new shares, whilst members of the investment manager’s team, Thor Johnsen and Andre Karihaloo have subscribed for 209.3k new shares

Jack Waters, chair of Digital 9 Infrastructure 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,” said Waters.

Digital 9 Infrastructure which launched in February this year, raising £300m at IPO, will use the proceeds to invest in its pipeline of investment opportunities.https://bed82c0b628f5a81ba11705bb67cbaa1.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

Its string of acquisitions includes Aqua Comms, a platform which owns and operates 14,300km of trans-Atlantic sub-sea fibre systems for £170m. Digital 9 raised a further £175m for the platform in June.

More recently, the fund acquired a Nordic Data Centre for £231m, representing a multiple of 20x contracted run-rate EBITDA with a base cash yield of 7%+.

Digital 9 targets total returns of 10% pa include a 6p year one dividend (5.6% yield on the issue price).

The admission of the new shares and dealings in the new shares is expected to commence at 8:00am, on 1 October 2021.