What Infratil’s CDC Data Centres valuation hike means for AirTrunk
AirTrunk has been mulling a $10 billion initial public offering, but a valuation hike across the ditch could put that number close to $13 billion or $18 billion on an enterprise value basis.
AirTrunk chief executive Robin Khuda. Janie Barret
NZ-listed renewable energy infrastructure investor Infratil issued a fresh valuation of its investment in CDC Data Centres on Monday morning, showing a $448 million increase over the six months since the March 31 assessment.
The Kiwi giant now puts its 47.99 per cent stake in CDC between $3.64 billion and $4.19 billion – or a midpoint of $3.88 billion – implying $8.09 billion for 100 per cent of the business.
Full-year earnings before interest, tax, depreciation, amortisation and fair value adjustments guidance of $260 million to $270 million imply an EBITDA multiple north of 30-times.
AirTrunk’s contracted EBITDA is understood to be upwards of $600 million. Applying a 30-times multiple implies an enterprise value of $18 billion. Strip out $5 billion-odd of debt and you’re looking at an IPO north of the $10 billion figure bandied around.
ASX-listed NextDC is currently trading on an EV/EBITDA multiple of 35.
AirTrunk tapped two investment banks – Goldman Sachs and Macquarie Capital – last week as joint lead managers on a sharemarket float in coming months. This comes after the data centre giant completed a $4.76 billion debt deal in August, linked to its carbon, energy and water usage.
Macquarie Asset Management and PSP have held an 88 per cent stake in the business since 2020. If the ASX listing is successful, it would mark the biggest IPO since health insurer Medibank Private’s $5.7 billion listing in 2014.
Of note, sources who spoke to Street Talk reckon a trade sale is more likely
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