NEXTDC Limited Launches Share Purchase Plan for Shareholders
NXT (NXT) Share Update September 2024 Tuesday 17th
NEXTDC Announces New Share Purchase Plan for Eligible Shareholders
NEXTDC Limited (ASX: NXT) has announced the opening of its Share Purchase Plan (SPP) for eligible shareholders in Australia and New Zealand. This follows the company's successful A$550 million placement to institutional investors.
Instant Summary:
- Eligible shareholders can apply for up to A$30,000 of new shares.
- The SPP is capped at A$200 million and is not underwritten.
- The issue price will be the lower of A$17.15 or the 5-day VWAP less a 2.5% discount.
- The SPP offer closes on 4 October 2024.
Details of the Share Purchase Plan
NEXTDC Limited has opened its Share Purchase Plan (SPP) to eligible shareholders in Australia and New Zealand. The SPP allows these shareholders to apply for up to A$30,000 worth of new fully paid ordinary shares. The plan is capped at A$200 million and is not underwritten.
The issue price for the SPP shares will be the lower of A$17.15 per share or the 5-day Volume Weighted Average Price (VWAP) during the five trading days up to and including the SPP closing date, less a 2.5% discount, rounded down to the nearest cent. This pricing structure ensures that shareholders receive a fair price based on recent market conditions.
Eligibility and Participation
Eligible shareholders are those who held NEXTDC shares at 7:00pm AEST on 9 September 2024 and have a registered address in Australia or New Zealand. Shareholders in the United States or those acting for the account or benefit of a person in the United States are not eligible to participate.
Participation in the SPP is optional. Eligible shareholders can apply for a minimum of A$1,000 and up to a maximum of A$30,000 worth of shares. The SPP shares will rank equally with existing ordinary shares from their date of issue.
Application Process
Eligible shareholders can apply for the SPP shares online using BPAY or EFT. The SPP offer booklet, which includes detailed instructions, is being sent to eligible shareholders. The offer closes at 5:00pm on 4 October 2024, and the results will be announced on 10 October 2024. The new shares are expected to be issued and commence trading on 16 October 2024.
For more information, shareholders can contact the NEXTDC Limited SPP Offer Information Line or consult their financial advisers.
The Share Purchase Plan provides an opportunity for existing shareholders to increase their holdings at a potentially discounted price. This could lead to increased investor confidence and support for NEXTDC's growth plans. The additional capital raised will help fund new data centre development sites in Asia and cover general corporate purposes and transaction costs.
Investor Reaction:
Analysts are likely to view the SPP positively, as it follows a successful A$550 million placement to institutional investors. The pricing structure ensures fairness, and the additional capital will support NEXTDC's expansion plans. However, the cap of A$200 million may lead to a scale-back if demand exceeds supply.
Conclusion:
Investors should consider participating in the SPP to take advantage of the potential discount and support NEXTDC's growth strategy. The final issue price and allocation will be announced on 10 October 2024. Shareholders are encouraged to read the SPP offer booklet and seek professional advice if needed.