IPO Watch: WA data centre and cloud provider DC Two doubled on debut
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DC Two (ASX:DC2) has become the latest IPO to enjoy a stellar ASX debut in 2020.
The West Australian company is a provider of cloud platforms and data centres primarily into WA and the Northern Territory.
DC Two has over 300 end user businesses on its platform. In FY20, it achieved recurring revenue of $1.8 million – a figure that has consistently grown in the last five years.
The company entered the bourse having raised $5.5 million at 20 cents per share and.
Upon ASX debut, shares more than doubled to over 40 cents by 2pm (AEDT).
The company hopes to expand onto the eastern seaboard capitalising on one of the fastest growing technology centres.
DC Two’s managing director Justin Thomas named data centre giant NextDC (ASX:NXT) as a company his firm aspired to be like.
“We are excited about becoming a listed company and welcome our new shareholders and thank them for the level of interest and support,” Thomas said.
“We anticipate continued demand for our integrated and accredited services as businesses rapidly transform their digital activities and enterprise customers seek compliance, privacy and security.
“Our priority will be to secure enterprise customers and we hope to follow other Australian data centre technology companies like NextDC in expanding Australia’s data centre and cloud innovation capabilities.”
Deloitte estimates this growth has caused a cumulative productivity benefit for the economy of $9.4 million in the last five years. Over the next five, it will grow to $3.76 billion.
DC Two also noted the surge in demand for remote working tools has been a particular godsend for the industry.
It noted a Frost & Sullivan report estimating US$600 million will be invested into the Australian data centre market over the next couple of years.