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SUPERLOOP (ASX:SLC) will roll out a major telecommunications gateway in Asia, after raising more than $40 million in an institutional placement.
Serial entrepreneur Bevan Slattery and his company completed the placement at $1.90 per share and raised $41.9 million, with plans to launch a share purchase plan to raise an additional $7 to $10 million.
The capital will be invested in a 110km fibre optic network and operations in Hong Kong connecting to Asia and mainland China.
It follows the approval of Superloop's telecommunications license in August, with the project expected to cost $45 million and take 14 months to complete.
Six data centres across Hong Kong will be deployed to service cornerstone customers while the main network is under construction.
Any proceeds received above the establishment cost will be invested in Project Red Lion, an initiative to expand the company's network to strategic commercial buildings in Singapore.
"Hong Kong is one of China's richest and most developed regions and serves as a gateway between China and the world," Superloop says in a statement.
"Superloop's entry into the Hong Kong market, when combined with its operating networks in Australia and Singapore, uniquely positions the company as a true Pan Asian fibre network owner and operator."
The company has also unveiled plans for TKO Express, a submarine cable crossing between Hong Kong Island and TKO Science and Technology Park an estate occupied by media, finance and data centre facilities.
The project is subject to approval and is expected to take 15 months to complete.
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