Data center AirTrunk contemplates $10B IPO valuation

AirTrunk, a player in the data center space, is considering an IPO that could skyrocket its enterprise value over A$10B ($6.4B), according to the Australian Financial Review.

• Speculation: Macquarie Asset Management and PSP Investments, key investors in AirTrunk, have added fuel to the speculation by sending out Request For Proposals (RFPs) to seven banks for review.

• What's the deal: The deal could either take the form of an IPO in Australia or involve the sale of a significant portion of the business. AirTrunk, Macquarie, and PSP officials are yet to comment.

• IPO managers: Macquarie Capital and two undisclosed banks are slated to be the joint lead managers of the IPO if it proceeds.

• Sector status: The data center sector is emerging as a hot investment due to its scarcity and increasing reliance of businesses on cloud-based services. Factors include exposure to digital infrastructure that has the potential to yield substantial returns. AirTrunk's CEO, Robin Khuda, has observed growth rates unseen in the past decade, which he finds "remarkable".

Adding to its list of achievements, AirTrunk recently secured A$4.6B multi-currency sustainability-linked loan, the largest syndicated deal in Australia this year.