Sustainable Australian operator DC Two debuts on ASX
Perth-based data centre operator DC Two has debuted on the Australian Stock Exchange (ASX) with a market cap of AU$11.7 million.
The firm, which raised $5.5 million in capital to fund its expansion plans, issued 27,500,000 fully paid ordinary shares at $0.20 per share.
MD Justin Thomas said: “We are excited about becoming a listed company and welcome our new shareholders and thank them for the level of interest and support. We anticipate continued demand for our integrated and accredited services as businesses rapidly transform their digital activities and enterprise customers increasingly seek compliance, privacy and security.”
The IPO will bankroll DC Two’s nation-wide expansion, which will take the firm into a further four Australia states: New South Wales, Queensland, Victoria and South Australia. DC Two said it aims to deploy “three regional, high-performance and modular data centres capable of delivering internationally competitive solutions in Australia for the first time”.
In addition, these high-density and transportable data centres will be located “behind the meter” at sustainable power generation sites, to reduce operating costs. DC Two said its modular data centres draw on excess green energy from existing solar, wind, biogas and other renewable sources, to provide clients with globally competitive power rates and lower cost services.
An expanded sales team will work to increase market share with SME and enterprise customers and take cloud solutions into the new markets. DC Two also said it is in the final stages of launching a “highly innovative software solution” to manage licensing for complex multi-tenant cloud environments, specifically targeting Microsoft Service Provider License Agreement partners.
Thomas explained: “The capital raised through the IPO will be directed towards growth activities, in particular into sales and marketing activities. Our priority will be to secure enterprise customers and we hope to follow other Australian data centre technology companies like NEXTDC, in expanding Australia’s data centre and cloud innovation capabilities.”
Over the last five years DC Two has noted consecutive recurring revenue growth, securing $1.8 million in recurring revenue in FY20.
In its native Western Australia (WA), DC Two plans to launch the state’s only accredited Tier 3 data centre integrated with a certified cloud platform – all controlled, managed and owned by the same entity – boosting its appeal to mid-market and enterprise customers and meeting local demand for cloud and software services.
It’s the second such announcement for WA this week after Equinix yesterday confirmed it is to expand Platform Equinix with a third IBX facility in Perth.