Data center operator AirTrunk is contemplating an initial public offering (IPO) that could potentially value the company at over A$10 billion ($6.4 billion), according to a report from the Australian Financial Review on Monday. The company's investors, Macquarie Asset Management and PSP Investments, have reached out to seven banks earlier this month, seeking proposals for a capital review that may include a potential listing on the Australian Securities Exchange (ASX).
The capital review could also consider selling a minority stake in the business. The selection process for joint lead managers of the IPO is underway, with Macquarie Capital and at least two other banks expected to take up the roles, although no sources were cited for this information.
AirTrunk, founded in 2016 with a vision to develop hyperscale data centers in Australia, opened its first facility in Sydney in 2017. Over the years, the company has broadened its reach across the Asia-Pacific region, operating and developing campuses in Australia, Hong Kong, Japan, Malaysia, and Singapore.
In 2020, a consortium led by Macquarie's Asia Infrastructure Fund 2 (MAIF2), which included Public Sector Pension Investment Board (PSP Investments), acquired a significant stake in AirTrunk. The investment was made alongside AirTrunk's Founder and CEO Robin Khuda, valuing the business at approximately A$3 billion ($1.93 billion) at that time.
Last month, AirTrunk secured a multi-currency sustainability-linked loan worth A$4.6 billion, marking it as the largest syndicated deal in Australia this year. The demand for data centers has been increasing as businesses are becoming more reliant on cloud-based services. This sector is garnering attention from investors due to limited supply and exposure to digital infrastructure.
AirTrunk's CEO Robin Khuda highlighted the development of artificial intelligence computing as a driving force for the industry's prospects. "The level of growth we are seeing right now is something we have not seen in 10 years," said Khuda at a conference this month. "It's remarkable."
Representatives for AirTrunk, Macquarie, and PSP have yet to respond to requests for comment by Bloomberg News.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.