LONDON: Digital 9 Infrastructure Plc announced the launch of its initial public offering (IPO) on the Specialist Fund Segment of the Main Market of the London Stock Exchange, for a target issue of 400 million Ordinary shares at an initial issue price of £1.0 per Share.
This announcement follows the Company’s Intention to Float announcement dated 1 February 2021.
Digital 9 Infrastructure plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet.
The portfolio will comprise future proofed, non-legacy, scalable platforms and technologies including (but not limited to) subsea fibre, data centres, terrestrial fibre, tower infrastructure and small cell networks (including 5G). The Company will focus, primarily, on digital infrastructure investments which are operational and with an existing customer base.
Following Initial Admission, the Company will acquire Aqua Comms, a platform owning and operating some 14,300km of the most reliable and resilient trans-Atlantic sub-sea fibre systems – the very “backbone” of the internet.
Aqua Comms’ assets are established, fully operational, and the Company’s investment manager, Triple Point Investment Management LLP believes the platform has inherent growth potential. It benefits from an established customer base with a range of global content providers (particularly the FAANGs) and telecom service providers, providing medium to long-term contracted revenues.
Aqua Comms will be acquired in its entirety at a valuation of US$215m (on a cash free, debt free basis), which (assuming a target raise of £400 million and following the introduction of third party debt) will comprise c.30% of the Gross Asset Value of the Company post IPO.
Triple Point is an experienced manager with over £1.8 billion of private, institutional, and public capital under management and has extensive experience in asset and project finance, portfolio management and structured investments.
The Investment Manager’s digital infrastructure team has a proven track record of US$1.9 billion of infrastructure investments, with realised investments yielding an IRR of 42 per cent.
In addition, the Investment Manager will benefit from a panel of digital infrastructure industry experts, with deep knowledge, relationships and involvement in a combined US$250 billion of digital infrastructure transactions.
The Company is targeting a 10 per cent p.a. net total accounting return, including an initial 6 per cent dividend yield per annum (by reference to the issue price on IPO) for the first financial year (significantly covered at IPO) and progressive thereafter.
Akur Limited, 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 Company’s IPO.
