Global Data Centre a winner from AirTrunk IPO: analysts
Here’s a company to put on your watchlist as the AirTrunk initial public offering kicks off.
GDC owns about 1 per cent of AirTrunk. Street Talk revealed on Sunday that the data centre giant was gearing up for an IPO after its shareholders, Macquarie Asset Management and PSP, sent a request for proposal to seven investment banks.
One of the Global Data Centre Group’s investments is in AirTrunk.
Unified Capital Partners analyst Jonathon Higgins put his two cents worth in on Monday, branding a $10 billion-plus expected enterprise valuation as “conservative” and a “major group catalyst” for ASX-listed digital infrastructure play Global Data Centre Group.
“Slow-growing data centres have been acquired at 20 times-plus EBITDA on average, implying that AirTrunk is worth over $12 billion at a minimum and probably more like $20 billion-plus,” he said.
He added that AirTrunk’s decision to sell or IPO its business is likely to be “highly material to GDC” with this being the “largest investment of the group”.
He put a $2.90 valuation on GDC, implying a 40 per cent increase from the last trading price of $1.82.
“In a bullish scenario AirTrunk could be worth over $150 million to GDC in terms of stake value or around $120 million post-tax,” he said. “This is around $1.55 alone in GDC value.”
GDC operates a portfolio of data centre investments. It invests directly in data centres and associated assets and typically takes equity positions of between $20 million and $50 million.
It has interests in more than 10 data centres, including those run by ETIX Everywhere, Fujitsu’s Perth data centre and AirTrunk.
GDC’s substantial shareholders include Tribeca Investment Partners, Sandon Capital, Samuel Terry Asset Management, MA Financial Group and Wilson Asset Management.
Eyes will be on how GDC trades at the open on Monday.
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