NEXTDC Shares Resume Trading Green, With A$1 Billion Raised

NEXTDC Limited (ASX: NXT) has successfully completed the institutional component of its entitlement offer, raising A$1.0 billion to fund a record pipeline of data centre contracts as Australia’s AI and cloud infrastructure boom gathers momentum.

NEXTDC shares resumed trading today following an extended halt, opening at A$14.92 before settling at A$14.38 in the final stages of the session, up 1.84% on the day. The price action represents a significant premium to the A$12.70 offer price, suggesting markets have endorsed management’s strategy to accelerate capacity expansion despite the dilutive impact of the capital raising.

The fully underwritten 1-for-5.4 pro-rata accelerated non-renounceable entitlement offer attracted strong support from institutional shareholders, with approximately 98% of eligible participants taking up their allocations. The small shortfall was allocated to investors who applied for additional entitlements, underscoring robust demand for exposure to Australia’s rapidly expanding digital infrastructure sector.

New shares issued under the institutional offer will rank equally with existing NEXTDC stock and are expected to commence normal trading on 30 April 2026. The company now turns its attention to the retail component of the raise, which aims to raise approximately A$0.5 billion when it opens on 27 April 2026.

The equity raising forms part of a broader A$2.2 billion capital plan that includes an expanded hybrid securities offering of roughly A$1.7 billion. Combined with existing facilities, NEXTDC expects to achieve pro forma liquidity of approximately A$5.9 billion, providing substantial firepower to execute on its development pipeline.

The capital requirements have been driven by extraordinary demand growth. In the three months to 31 March 2026, NEXTDC’s pro forma contracted utilisation surged approximately 60%, rising around 250MW to reach 667MW. More significantly, the company’s forward order book increased 83% to a record 544MW, heavily weighted toward hyperscale cloud providers and AI infrastructure customers.

Management has indicated this forward order book is expected to translate progressively into billing, revenue and EBITDA growth from FY26 through FY30 as projects are delivered and commissioned. To service this demand, NEXTDC raised its FY26 capital expenditure guidance to approximately A$2.7–3.0 billion, up from A$2.4–2.7 billion previously.

The retail entitlement offer will be available to eligible retail shareholders at the same A$12.70 offer price and 1-for-5.4 ratio as the institutional component. Retail investors will have the opportunity to take up all, some, or none of their entitlements, with a Top Up Facility available for those seeking to apply for additional shares beyond their base allocation, subject to availability and potential scale-back.

All new shares issued under both the institutional and retail tranches will carry the same rights as existing NEXTDC shares, ensuring parity across the shareholder register. The timetable includes settlement of institutional shares, followed by the retail offer period closing on 11 May 2026.

The capital injection positions NEXTDC to accelerate development of its S4 Sydney data centre in Western Sydney, which has been linked in market commentary to arrangements with global AI infrastructure players. The company has emphasised its focus on operational excellence, sustainability leadership, and strategic investments as it seeks to cement its role as the backbone of Australia’s digital economy.

The successful completion of the institutional raise and the premium at which shares have resumed trading suggest NEXTDC has secured a vote of confidence from sophisticated capital, but the retail offer and subsequent delivery against the forward order book will determine whether today’s enthusiasm translates into sustained shareholder value creation.