IFT - Infratil

[LoungeLizard]

IFT in trading halt today to raise $1.15 Billion for its Data Centre operations........ "an exciting time to be an Infratil shareholder," says Jason Boyes.

https://www.nzx.com/announcements/432883

Mr Boyes said the growth in demand has caused CDC to accelerate its development and capital expenditure plans:
 
 - CDC's development pipeline continues to expand with the inclusion of the Marsden Park development, a 720MW campus (more than double CDC's current operating capacity), bringing CDC's total planned capacity to around 1,870MW targeted to be operating or under construction by 2033
 
 - CDC expects 200MW+ of capacity to commence construction over the next 12 months, including the first tranche of Marsden Park
 
 Infratil expects to commit equity funding of around A$600 million to CDC over the next two years, which represents its pro-rata share of estimated funding capacity required by CDC to execute on its medium-term development pipeline.
 
 "CDC's growth has accelerated considerably recently, driven by rapid growth in AI-driven data demand. The growth we've announced today is significant, and confirms CDC is a world-class business.
 
 "The NZ$1,150 million we are raising today will not only support the CDC team to address this growth, but also strengthens our ability to expand our renewables, digital and healthcare platforms. This additional capital, combined with the significant growth opportunities ahead, makes it an exciting time to be an Infratil shareholder."

The proceeds of the Equity Raising (combined with cash on hand and currently available and undrawn debt facilities) will provide Infratil with ~NZ$1,809 million of total available liquidity[2]. Following the Equity Raising, wholly owned group gearing will be reduced from 20% to 11.8%[3].

Will go for my full allotment. At $10.15 this is a great opportunity to top-up. Unlike other companies that I won't mention, Infratil's share price has always bounced back very quickly after the CR. It's always been a no brainer to participate in my opinion.

[PunchCard]

What's the pro-rata amount for this CR? There seems to be different figures in the documents?

> The Placement will comprise the issue of approximately 98.5 million new ordinary shares,
representing approximately 11.8% of current issued capital

https://api.nzx.com/public/announcement/432883/attachment/420838/432883-420838.pdf

> Approximately 113.3 million new shares to be issued (equivalent to 13.5% of current issued capital)

https://api.nzx.com/public/announcement/432883/attachment/420839/432883-420839.pdf

[Left Field]

What's the pro-rata amount for this CR? There seems to be different figures in the documents?

Full details to be released to eligible shareholders 20 June 2024....

Full details of the Retail Offer will be set out in the Retail Offer
Document, which will be released to the NZX and ASX, and sent to eligible
shareholders in New Zealand and Australia on Thursday, 20 June 2024. The
closing date for applications by eligible shareholders is 5:00pm NZST on
Monday, 8 July 2024.

[Left Field]

What's the pro-rata amount for this CR?

> The Placement will comprise the issue of approximately 98.5 million new ordinary shares,
representing approximately 11.8% of current issued capital

> Approximately 113.3 million new shares to be issued (equivalent to 13.5% of current issued capital)

Sssoooo at 11.8% to 13.5% new shares holders need to apply for (roughly) 120 to 140 new shares per 1000 they currently hold to avoid dilution......

Going to be interesting to see how the market reacts today when trading resumes.

https://www.nzx.com/announcements/432961

[LoungeLizard]

Sssoooo at 11.8% to 13.5% new shares holders need to apply for (roughly) 120 to 140 new shares per 1000 they currently hold to avoid dilution......

Going to be interesting to see how the market reacts today when trading resumes.

https://www.nzx.com/announcements/432961

SP currently up 18c to $11.07 - nearly a dollar more than placement price.

[Left Field]

SP currently up 18c to $11.07 - nearly a dollar more than placement price.

Compare that to HGH's recent Cap raise(s)..... say no more  ( Tho early days....)

[LoungeLizard]

Compare that to HGH..... say no more  ( Tho early days....)

Huge buying - nearly $27m changing hands. I really thought the price would have gone down, not up, although there may be some selling post-placement. Still, it's a great vote of confidence in IFT's plans. Onwards and upwards!

[Left Field]

Details of the retail offer here

https://www.nzx.com/announcements/433105

An Eligible Shareholder that wishes to, at minimum, maintain their proportionate shareholding in Infratil following completion of the Retail Offer would need to subscribe for at least 136 shares for every 1,000 shares that they own on the Record Date. In dollar terms, this means that such Eligible Shareholder's application to participate in the Retail Offer must be for at least NZ$1,381 for every 1,000 shares that they hold[2].

[LoungeLizard]

Shares currently trading at $11.08 and retail offer is $10.15. Hmmm...what to do?.. what to do?

[Left Field]

Shares currently trading at $11.08 and retail offer is $10.15. Hmmm...what to do?.. what to do?

Indeed, decisions.... decisions. A nice extra dividend equivalent of roughly $1.00 per new share will ensure the offer is oversubscribed (and I'll be happily adding the maximum allocation possible to my holding.)

Nice to see big volumes still going through around $11.18

Onwards and upwards.

[LoungeLizard]

4.5m shares traded and a huge dump at closure driving price down to $10.64. Strange. Still significantly higher than placement price though, and could just be a blip as the SP has been up and down like a yo-yo of late.

[BlackPeter]

4.5m shares traded and a huge dump at closure driving price down to $10.64. Strange. Still significantly higher than placement price though, and could just be a blip as the SP has been up and down like a yo-yo of late.

Index rebalance day?

[Left Field]

In my inbox this evening.......


We are pleased to report that as we celebrate 30-years of Infratil we continue to build on our legacy of success. During the quarter we announced a strong financial result for the year ended 31 March 2024, while also making significant strides in growing our portfolio.

Since the announcement of our annual results the team has been busy with the announcement of an approximately NZ$1,150 million equity raising to fund further investment into data centre operator CDC's accelerating growth, as well as provide more flexibility for growth across our global portfolio. Full details of the equity raise are available on our website.

Separately, we have nearly completed our 2024 retail investor roadshow, having met with almost 2,000 investors across 17 presentations throughout New Zealand. These meetings provide a great opportunity for shareholders to raise questions, voice concerns, and engage with management. We appreciate and take on board all the feedback we receive from these sessions.

Thank you to all the investors who were able to attend one of these presentations.

Across our portfolio

Digital

CDC is continuing to see a surge in demand for data centre capacity on the back of cloud adoption and significant investments in Generative AI. This rapid increase in demand has seen CDC enter advanced negotiations with customers for over 400MW of capacity at multiple sites across the CDC footprint. This capacity is expected to come online over the next 4 to 5 years.

In parallel, CDC's development pipeline continues to expand with the addition of its Marsden Park development, a 720MW campus (more than double CDC's current operating capacity), bringing CDC's total planned capacity to around 1,870MW targeted to be operating, or under construction, by 2033.

Kao Data has been granted planning permission for a new, 40MW, sustainable data centre in Stockport, Manchester. The 40,000m2 former industrial site, which will become operational in 2026 following its redevelopment, will create a leading infrastructure hub to support Greater Manchester's fast-growing and diverse technology ecosystem - positioning the region as one of the UK's largest high-performance computing and artificial intelligence clusters outside of London and the Oxford-Cambridge arc.

On its one-year anniversary, One NZ launched One Wallet, a digital wallet for its customers, best described as like air points to help buy your next mobile phone. Already One NZ has stacked over $30 million dollars in value in its customers' One Wallet as part of its mission to be the best place to buy a new phone in New Zealand. One NZ customers can access their One Wallet balances and watch them grow via their My One NZ app and the balance can be redeemed on any phone purchased on an interest free term.

For the third year running, One NZ has been awarded Aotearoa's 'Best in Test' mobile network 2024 by independent benchmarking organisation umlaut company, part of Accenture. Mobile connectivity is now an essential part of daily life, and so you need a mobile network that performs at its best. These results show One NZ leads overall, including on voice and data performance, plus reliability.

Renewables

In May, Longroad Energy welcomed a number of dignitaries, including Arizona Governor Katie Hobbs, to its Sun Streams Complex. The nearly 200 guests celebrated the progress made to date at the 6,000+ acre solar and storage complex and the many benefits it is delivering to Arizona, including generating clean, solar energy to power 200,000 average American homes, supporting 1,000 construction jobs and providing more than $300 million in benefits to Arizona schools and communities through its long-term leases with the Arizona State Land Department and tax remittances.

Manawa Energy has continued to progress and expand its pipeline of renewable development options in New Zealand, now with a development pipeline of more than 1,200MW of secured solar and wind development options. The projects in its pipeline are expected to present exciting, value-accretive growth opportunities to complement Manawa's existing asset base.

Galileo has announced that it has signed a Corporate Power Purchase Agreement with Cargill, for a new solar PV project to be built in Southern Italy. The planned project will have a total capacity of 79MW and is expected to provide Cargill with approximately 1TWh of green electricity over a period of 10 years, avoiding the emission of more than 450,000 tonnes of CO2.

Gurīn Energy has announced a significant step forward in the development of two solar power plants, Gurīn's first projects in Thailand. In partnership with WHA Utilities and Power Public Company Limited, Gurīn has signed two 25-year power purchase agreements with the Electricity Generating Authority of Thailand. These agreements involve selling clean, emission-free energy from two solar projects: the 69MW Stella Power 1 in Ratchaburi, set to be commissioned in 2029, and the 59MW Stella Power 2 in Kanchanaburi, set to go online in 2030.

Healthcare

RHCNZ Medical Imaging announced the opening of two new Hamilton branches, including one at Te Kōhao Health Wellness & Diagnostic Centre.

This new clinic, one of the first of its kind, is a partnership between Pacific Radiology and Te Kōhao Health. The clinic will help reduce health inequalities for Māori in the Waikato by providing a new model of care that minimises barriers to access and provides timely, essential health services in an appropriate, whānau-led environment.

RetireAustralia celebrated an important milestone marking the completion of the third and final stage of The Verge at Burleigh G.C., and the opening of its first Care Hub. The Verge offers 168 one, two and three-bedroom independent living apartments, a wellness centre, activities hub, home care services and now a 10-suite Care Hub, an alternative to aged care in an intimate, homelike environment.

Airports

Wellington Airport has welcomed the arrival of a 500,000-litre shipment of Sustainable Aviation Fuel for Air New Zealand, marking the first time the low emissions fuel has been used in the capital and marking a trifecta of decarbonisation wins for the airport in the last year.

It follows Air New Zealand selecting Wellington and Marlborough Airports to host its first all-electric commercial service, transporting cargo across Cook Strait from 2026.

Air New Zealand and Wellington Airport also collaborated on a hydrogen trial earlier this year for charging ground service equipment, supported by Hiringa Energy and Toyota New Zealand.

Elsewhere – Rivers of Wind (pictured above)

Last year our inaugural Sustainability Report and Climate Related Disclosures featured artwork from RIvers of Wind, a digital artwork by Delainy Jamahl. We were delighted to showcase this local artistic talent, especially because it can be interpreted to represent many of the characteristics of Infratil's portfolio through the intersection of climate, renewable energy, digital technology, and of course, Wellington Airport.

Delainy has created a new immersive art space, The Grid, opening in the heart of Wellington this July and August, inviting you to experience art in a whole new light.

Be swept away in Rivers of Wind, a mesmerising immersive experience that draws on 8 years of weather data from the Wellington Airport weather station to visualise the invisible. Rivers of Wind explores the intersection of technology and nature and their effect on the human experience in this captivating exhibition. A continuously looping 48-minute digital artwork, Rivers of Wind is presented in a wrap-around projection environment with a surround soundtrack from renowned New Zealand composer Rhian Sheehan with musician Ed Zuccollo.

We would love for you to support this project over the coming months. The Grid is located at 18 Haining St, Te Aro, with tickets ranging from $15-25.

Thanks again for your continued support of Infratil. We look forward to meeting up with investors in person again at our upcoming Annual Meeting on 22 August in Wellington.

For additional updates, you can also follow Infratil on LinkedIn.

[Left Field]

Anyone still in doubt whether to take part in IFT's cap raise should read yesterday's posts on the other channel by posters Kiora and 3141592.

IFT one of the best NZX companies and this cap raise is one of the best investment opportunities around IMO (for holders)

IFT currently sits at over 30% of my portfolio and after the Cap Raise will be even more.

As always DYOR and take responsibility for your  own decisions.

[Left Field]

The 30 June 2024 independent valuation of Infratil's investment in CDC shows an increase of A$466 million over the three months since the 31 March 2024 valuation.  (However cynics will say..." it is only a 'valuation".')

https://www.nzx.com/announcements/433951