Digital 9 faces £105m shortfall in latest fundraising

1 p.m. | Alan Burkitt-Gray

A slump in tech stocks since the start of 2022 means Digital 9 Infrastructure has raised less than half of its hoped £200m placement this week.

The company, which owns undersea cable company Aqua Comms, said yesterday it had raised £95.2million in new shares, well below the target set two weeks ago.

But Thor Johnsen (pictured), head of digital infrastructure at Triple Point, Chief Investment Officer of Digital 9, said Capacity this morning: “There’s always the next time if we need more money.”

He noted that Digital 9 had raised a total of £845m so far, including the £300m from its initial public offering in March 2021.

“That’s a lot of capital,” said Johnsen, who added that Digital 9 has a good pipeline of potential investments. “There are more opportunities than we expected.”

He would not speculate on future investments. “Nothing is ever done until it’s done.” The company owns, in addition to Aqua Comms, the Verne Global data center in Iceland, as well as data center land and a cable landing station in the North East of England.

It is also investing in Europe Middle East India Connect 1 (EMIC-1), an underwater project designed to link France to India, which Aqua Comms will manage.

Two weeks ago, Digital 9 announced it would spend 76 million euros for an initial 56% stake in Eircom’s Tetra Ireland Communications, which runs public safety networks for police and other security services. ’emergency. He has the option of increasing his stake to 100% for an additional 60 million euros.

Jack Waters, the former Zayo executive who chairs Digital 9, said, “The company continues to make significant progress in building a diverse portfolio of digital infrastructure assets with sustainability at its core, whether whether it’s the environmental credentials of the Verne Global data center platform or the increased connectivity provided by Aqua Comms and the new EMIC-1 submarine cable.

But year-to-date sentiment has affected Digital 9’s fundraising this week, Johnsen said. Capacity. “The truth is when we look at the markets and what’s happened this year so far, the market has just been crushed.”

the FinancialTimes noted tuesday that “giants like [Google owner] Alphabet has lost about a tenth of its market value” since the start of 2022, and “the S&P 500 has fallen 8% from its high point at the start of the year”.

Waters said: “We very much appreciate the continued support of our shareholders and new investors, especially in the current volatile market, and we look forward to reporting on the deployment of these funds, as well as our planned debt financing, on time.”

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