The NextDc Ltd (ASX: NXT) share price is sliding today.
Shares in the S&P/ASX 200 Index (ASX: XJO) tech stock closed on Wednesday trading for $16.71 apiece. NextDC stock was then frozen as the company entered a trading halt ahead of its $1.32 billion capital raising announcement.
That announcement was made on Thursday, but trading remained halted until today.
In early morning trade on Monday, the NextDC share price stands at $16.30, down 2.5% from Wednesday's close.
For some context, the ASX 200 is down 0.6% at this same time.
Here's what's happening.
ASX 200 tech stock rakes in new funding
The NextDC share price is likely under selling pressure as new shares for the capital raising were issued for $15.40, an 8% discount to Wednesday's closing price.
Still, at $16.30, the share price remains well above that new issue price after the company reported today that it has successfully completed the institutional component of its 1 for 6 share entitlement offer.
The institutional entitlement offer raised gross proceeds of approximately $937 million.
The company noted strong support from its eligible institutional shareholders, with a take up rate of around 99%.
Commenting on the capital raising that's putting some pressure on the NextDC share price today, CEO Craig Scroggie said:
We are delighted with the exceptional level of support from our existing institutional shareholders in this entitlement offer. The raising ensures NextDC is positioned to continue to take advantage of the unprecedented growth in demand for data centre services that we are seeing across the market.
Scroggie added that, "Retail shareholders will shortly be invited to participate in the entitlement offer on a pro-rata basis."
Management expects the retail entitlement offer to raise roughly $384 million. The retail entitlement offer runs from Thursday morning 18 April through to Thursday afternoon 2 May.
Last week, NextDC noted that it's been experiencing record demand for its data centre services. As such, the company intends to use most of the new funding to improve its digital infrastructure platforms in its key Sydney and Melbourne markets.
"We have decided to bring forward the development and fitout of key assets in Sydney and Melbourne to ensure we are able to meet this growth in demand," Scroggie said last week.
NextDc share price snapshot
The NextDC share price has been a stellar performer over the recent past. Despite today's retrace, shares remain up 19% in 2024 and up 36% since this time last year.
