Australia's HMC Capital launches $1.79 billion IPO for DigiCo REIT (updated)

HMC Capital

20/11/2024 22:23

(Adds details from paragraph 2 onwards)
       Nov 21 (Reuters) - Australia's HMC Capital  HMC.AX  on Thursday unveiled plans to create
DigiCo REIT, a new ASX-listed digital infrastructure real estate investment trust, in a A$2.75
billion ($1.79 billion) underwritten initial public offering. 
    The IPO has been expanded by A$100 million, following strong interest from both
institutional cornerstone and retail investors, the company said. 
    DigiCo REIT will manage A$4.3 billion worth of data center assets across the U.S. and
Australia, with HMC owning about a 18% stake worth A$500 million in DigiCo REIT. 
    Following the ASX listing of DigiCo REIT, HMC's assets under management are projected to
grow by 73% in 2024, reaching about A$17.5 billion.
    The IPO is expected to boost HMC's recurring funds management revenue and generate
significant transaction-related income in fiscal 2025, HMC said in a statement.

($1 = 1.5378 Australian dollars)

 (Reporting by Roushni Nair in Bengaluru; editing by Alan Barona)
 ((Roushni.Nair@thomsonreuters.com))