Investment Trust Targeting Digital Infrastructure Plans IPO
The newly formed trust plans to invest in a range of assets, including data centers, fiber, tower infrastructure and 5G networks, according to a statement from Triple Point, an investment management firm with £1.8B on its books that will externally manage Digital 9.
"Digital 9 Infrastructure is an opportunity to invest in the true backbone of the internet," Triple Point Managing Partner James Cranmer said in a statement to City AM. “From day one, DGI9 will deliver returns underpinned by 20 year plus contracted revenue from some of the largest companies in the world, including Facebook, Apple, Amazon, Netflix, Google and Microsoft."
The company aims to raise £400M in the IPO, £160M of which is expected to be invested into Aqua Comms, a platform that owns and operates roughly 20,000 kilometers of trans-Atlantic, subsea fiber. Digital 9 plans to publish a prospectus in March, followed by a listing shortly thereafter.
The trust's move into the public markets will be the latest test of investor interest in digital infrastructure. Capital has poured into data centers and other digital infrastructure in recent quarters, and that is expected to continue as demand remains high.
Other deals in the pipeline include Cordiant Capital, which plans to raise £300M for a digital infrastructure fund by selling shares on the London Stock Exchange. That fund will invest in data centers, fiber-optic networks and mobile towers in the UK, North America and Europe, and will list shares later this month.
In the U.S., a special purpose acquisition company called Power & Digital Infrastructure Acquisition recently filed to go public on the Nasdaq stock exchange. The company aims to raise $250M in the offering, with plans to target energy and electrical grid assets serving data centers and other high-density consumers.