Australia's DigiCo REIT extends decline in second ASX session
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 16 2024
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Source: Reuters
DigiCo Infrastructure REIT IPO Performance: DigiCo Infrastructure REIT's shares fell 6.8% to A$4.24 after its initial public offering, which raised A$2 billion, marking Australia's largest IPO in six years. The stock had an offer price of A$5.00 and faced a decline amid concerns from investment research firm Morningstar regarding its valuation.
Future Plans and Market Context: DigiCo plans to use part of the IPO proceeds to acquire two large-scale data center sites near Sydney, capitalizing on the growing demand for data centers driven by artificial intelligence services. Meanwhile, shares of asset manager HMC Capital, which holds an 18.2% stake in DigiCo, also experienced significant losses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
