This ASX All Ords tech share is rising today on AI megatrend excitement

Macquarie Technology has raised $160 million to increase its exposure to the AI megatrend.

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Key points

  • Macquarie Technology shares are rising on Wednesday
  • This follows the completion of a $160 million institutional placement which raised funds at a 7.6% discount
  • The company was originally seeking to raise $130 million to increase its exposure to the AI megatrend

The Macquarie Technology Group Ltd (ASX: MAQ) share price has returned from its trading halt and is pushing higher.

In morning trade, the ASX All Ords tech share is up 2% to $64.51.

Why is this ASX All Ords tech share rising?

Macquarie Technology shares are rising today after the company announced the completion of an institutional placement.

According to the release, the company has received firm commitments to raise $160 million by way of a single-tranche institutional placement at $58.50 per share. This represents a modest 7.6% discount to its last close price.

Management revealed that the placement received strong support from new and existing shareholders. So much so, the company raised more than the $130 million it was originally seeking.

Why did Macquarie Technology raise funds?

The company notes that the placement proceeds will strengthen its balance sheet and provide funding to pursue growth opportunities in its data centre portfolio. It also highlights that this strategically positions Macquarie Technology to capitalise on the fast-growing cloud and artificial intelligence megatrends.

The CEO of the ASX All Ords tech share, David Tudehope, commented:

This raise will strengthen our company and enable us to invest and expand our data centre business to capitalise on cloud and AI megatrends. As our economy becomes more digitised, organisations are moving their data and applications to the cloud at a faster pace. The cloud lives in new-generation data centres like ours supported by leading cloud services and cyber security platforms.

AI is the next significant megatrend for data centres and the digital economy, driving higher power density and demand for greater capacity. As these two megatrends combine, we expect to see strong demand for the latest generation of data centres.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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