The Superloop Ltd. (ASX: SLC) share price is up about 10% since I added it to my portfolio four months ago. However, it has been an extremely volatile ride in that time. You can read the rationale behind why I bought shares here.
What’s Happened To Superloop?
Since I bought shares, Superloop successfully completed an equity raising of just over $30 Million. I participated in the retail entitlement offer. Click here to learn how capital raisings work.
Superloop stated the purpose of the capital raising was to “repay debt, and provide additional funding capacity allowing it to take advantage of near term opportunities including infrastructure investment, network expansion, and the acquisition of cash-generating assets and general working capital”. I took up my full entitlement to new shares.
Also, Superloop received an initial $1.90 per share takeover offer from Queensland Investment Corporation (QIC). QIC is owned by the Queenland Government and manages about AU$85 billion. This offer was revised upward to $1.95, however, a deal was not reached.
Finally, last week, Superloop announced the INDIGO subsea cable system is now complete and ready for deployment by consortium members.
The cable system is comprised of INDIGO West (Singapore to Perth) and INDIGO Central (Perth to Sydney cables). INDIGO will, “support up to 36 terabits per second, the equivalent of simultaneously streaming millions of movies a second”. That’s a lot of Netflix Inc. (NASDAQ: NFLX).
Telstra Corporation Ltd (ASX: TLS) is also an INDIGO consortium partner. Rask Group’s top investment analyst recently released an update on Telstra which you can access by clicking here.
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Disclosure: At the time of publishing, William owns shares in Superloop Ltd.
