HMC Capital's IPO Plans

By Scott Murdoch

SYDNEY (Reuters) – Australia’s HMC Capital is moving forward with the initial public offering (IPO) of its data centres business, projected to be valued at $A4 billion ($2.64 billion), as outlined in its regulatory filings on Monday (NASDAQ:MNDY).

The offering intends to raise $A2.6 billion, marking the largest deal in Australia since GQG Partners generated nearly $A1.2 billion in 2021.

HMC Capital stated that the DigiCo Real Estate Investment Trust (REIT) will encompass 13 data centres and 586 customers.

Total assets under management will approximate $A4 billion, with HMC Capital committing a minimum of $A500 million, controlling nearly a 19% stake in the venture.

This IPO follows HMC’s plan to invest $A400 million to acquire the Australian data centre operating platform iseek. Additionally, iseek will channel A$250 million of the acquisition price into the DigiCo IPO, according to the filing.

Recently, HMC acquired the colocation data centre operator Global Switch (NYSE:SWCH) Australia for A$1.937 billion, which is set to be a crucial component of the DigiCo portfolio.

The acquisition of iseek contributed to a rise in HMC shares by as much as 4%, reaching a record high of A$10.79.

Although HMC's regulatory filings do not indicate a precise IPO timeline, local media sources suggest that the REIT could be listed on Dec. 16.

($1 = 1.5170 Australian dollars)