Digital 9 Infrastructure (DGI9) has announced that its initial public offering (IPO) on the Specialist Fund Segment of the Main Market of the London Stock Exchange, has raised gross proceeds of £300m. DGI9’s shares are expected to be admitted to trading at 8am on 1 April 2021.
About Digital 9 Infrastructure
Digital 9 Infrastructure Plc is a newly established, externally managed investment trust. The Company will invest in a range of digital infrastructure assets which deliver a reliable, functioning internet. The portfolio will comprise future proofed, non-legacy, scalable platforms and technologies including (but not limited to) subsea fibre, data centres, terrestrial fibre, tower infrastructure and small cell networks (including 5G). The Company will focus, primarily, on digital infrastructure investments which are operational and with an existing customer base.
Following the completion of the offer, the Company will acquire Aqua Comms, a platform owning and operating some 14,300km of the most reliable and resilient trans-Atlantic sub-sea fibre systems – the very “backbone” of the internet (DGI9’s intention to float said that it could invest up to £160m in Aqua Comms).
Director and investment manager investments
DGI9’s directors have subscribed for, in aggregate, 130,000 in the company, while the wider Triple Point Group (including funds managed by the Triple Point Group) have subscribed for, in aggregate, 6.5 million. Thor Johnsen, head of the Investment Manager’s Digital Infrastructure team has subscribed for 250,000 shares, while Andre Karihaloo and Arnaud Jaguin, both members of the Investment Manager’s Digital Infrastructure team, have each subscribed for 25,000 shares.
Comments from Jack Waters, Chair of Digital 9 Infrastructure
“The Board is delighted that such a broad and deep investor base is as excited about D9 as we are. As planned, our first acquisition will be into Aqua Comms, a platform owning some 14,300km of modern, operational trans-Atlantic subsea fibre, representing the true backbone of the internet. We expect to close this first transaction next week, underpinning our 6p dividend target.
As a board we look forward to working together with Triple Point in rapidly deploying the rest of the proceeds into other critical digital infrastructure assets.”
Comments from Thor Johnsen Head of Digital Infrastructure at Triple Point Investment Management LLP
“We appreciate the fantastic support from a broad range of institutional and advised retail investors. We would like to thank them for their confidence in Triple Point and in sharing our excitement for the opportunities in digital infrastructure. We have collectively experienced the digital transformation in our society over the last few decades (and particularly in the last 12 months), and we believe we are at the dawn of a broader transformation. Together with the initial cornerstone investment into Aqua Comms, D9 will be focused on global investment into the critical infrastructure driving this unstoppable force of change. Importantly, at the heart of the D9 investment thesis will be ESG considerations of digital inclusion and environmental impact.
We have a deep pipeline of assets we are working on and we are excited about updating shareholders on these soon.”
[QD comment: while it may have fallen short of £400m target, an issue size of £300m is nonetheless a very good result. There are plenty of opportunities in this area so, assuming that the manager successfully deploys the proceeds allowing investors to gain comfort, there’s every chance they’ll be back looking to raise more finance.]