2010: The Return of the Data Center IPO
After a year without data center IPOs in 2009, the public markets opened for a select number of companies in 2010. Other aspirants filed plans for an initial public offering in 2010 but were unable to compete the offering before year-end and will look to 2011 for their IPOs. Here’s a review of the announcements in 2010:
CSF Group PLC: In March this Malaysian data center company raised £28 million ($42 million US) in an initial public offering on London’s junior Alternative Investment Market, making it the first data center IPO of 2010. The company will use the funding to further expand its data center footprint in southeast Asia, including a new facility in Malaysia and an expansion into underserved markets in Vietnam and Thailand.
CoreSite Realty: On Sept. 23 this data center developer completed its initial public offering as a real estate investment trust (REIT), raising $270 million. CoreSite offers finished “wholesale” data center space, which has been in high demand as end users seek turn-key space that can be deployed quickly. The Denver-based company became the third data center REIT, following in the footsteps of Digital Realty Trust (DLK) and DuPont Fabros Technology (DFT). CoreSite Realty Corporation trades on the NYSE under the symbol COR. CoreSite went public at $16, and shares are currently trading around $13.50.
NEXT DC: Australia’s NEXT DC hasn’t yet opened any of its data centers. But in December the company became the latest data center provider to make an initial public offering. NEXTDC Limited said today that the company has been admitted to the Official List of ASX Limited following a successful IPO that raised $40 million. NEXTDC commenced trading under the ticker NXT, and shares have traded between $1.45 and $1.80.
Carter Validus Mission Critical REIT: On Dec. 10 this newly-formed company got the go-ahead from the SEC to begin selling shares for a stock offering in which it hopes to raise between $200 million and $1.75 billion to purchase data centers and medical facilities. Carter Validus is comprised of executives from real estate firms Carter & Associates of Atlanta and The Validus Group of Tampa. The firm said it doesn’t have any immediate plans to be listed on a public stock exchange.
FILINGS FOR IPOs:
The Telx Group: On March 19th this provider of colocation and interconnection services filed for an initial public offering in which it hopes to raise up to $100 million. The company intends to use the money to accelerate the growth of its business through expanding and upgrading its data centers, and possibly acquisitions. The company is expected to trade on the Nasdaq under the symbol TELX.
Interxion: On May 4 European colocation and data center specialist Interxion filed plans for an initial public offering with the U.S. Securities and Exchange Commission. The company filed its paperwork “on a confidential basis,” meaning the details are not public.
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