By Corinne Reichert, ZDNet
Asia-Pacific fibre infrastructure company Superloop has announced that it is hoping to raise AU$35.3 million through a fully underwritten one-for-seven pro-rata accelerated entitlement offer of shares.
Superloop is offering a total of 16,793,942 new shares at AU$2.10 per share, a 12.9 percent discount off the closing share price on June 16 prior to Superloop placing itself in a trading halt on Friday morning pending the announcement.
“The funds raised from this entitlement offer will be used to fund investment in the Hong Kong TKO Express domestic submarine cable project; expansion of the HK fibre network beyond the initial network; expansion of the Singapore network (including but not limited to Project Red Lion); general working capital; and the costs of the entitlement offer,” Superloop said in an announcement to the Australian Securities Exchange (ASX) on Friday.
Superloop also provided an update of its networks throughout the Asia-Pacific region.
Its Singaporean network now consists of 132km of Superloop fibre under Project Red Lion; eight datacentres; two cable landing stations; and 14 strategic commercial enterprise buildings now connected of its target of 25 buildings. Singapore is a key gateway between Asia and Europe, according to Superloop, with seven new datacentres planned and 15 existing subsea cables.
Superloop's 110km Hong Kong fibre-optic telecommunications network is due to be completed in December 2016, with two 1,000-core cables reaching 30 sites and datacentres initially. Superloop added that it is targeting Hong Kong connectivity because it is an “international springboard to mainland China and also [a] gateway for mainland China to the rest of the world”. Hong Kong has 10 new datacentres in the works, along with 13 existing international telco submarine cable systems, a mobile penetration rate of 233.3 percent, and an average peak internet connection speed of 92.6Mbps.