Thoughts on DigiCo (DGT) please

Hi Mark,

Thanks, and likewise – have a happy and healthy festive season! Importantly as you say at MM we only provide General Advice.

We have discussed DGT a couple of times this week following its recent lacklustre IPO.  The short term issue appears to be that institutions weren’t overly enthusiastic to the IPO leading to a large take up of “less sticky” retail investors, hence when the stock started retreating below its $5 issue price selling by the weak “stags” who assumed they would get a bump up started snow ball sending the stock down towards $4.

• We thought the IPO was a touch too expensive, and we were also concerned about the amount of money they were trying to raise. The ASX is a small market and that was a very big raise, hence we were concerned about the secondary market support, so we did not participate.

We now like the DGT REIT in the $4-4.40 area – we think it will be fine in the medium term, but we suspect there will be ongoing selling if it nears the IPO price again around $5. These things take a while to work through. We are probably more likely to buy HMC Capital (HMC) which listed DGT and remains a major shareholder. They are the fund manager collecting the high fees from their suite of listed REITs. We like HMC below $10.

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DigiCo Infrastructure REIT (DGT)

LAST UPDATED 20/12/2024 11:34

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DigiCo Infrastructure REIT (DGT)

LAST UPDATED 20/12/2024 11:34