SLC – Superloop Limited | Aussie Stock Forums

finding it hard to work out why SLC is struggling (as it has for quite a while). In May ’19, a QIC offer at $1.95 didn’t proceed and/ as it as thought Bevin Slattery was looking for a rival offer in the 2’s. It came to naught, the SP never got near the offer price. In fact since listing 5 years ago, it ran to $3 in late 2016 but has been drifting S ever since. In September, a Capital Raise at 82c, some 35% of SLCs capitalisation, was fully underwritten. A two-tranche placement to institutional investors to raise approximately $55million ; and 1 for 6 accelerated non-renounceable entitlement offer to raise approximately $35 million .

– essentially a recapitalisation; as stated, the CR was going to paying back senior debt.
– SLC states the core infrastructure is now in place, and incremental further investment will be coming from customer growth.

This seems to have stabilised the share price in the last 3 months but has not held $1 with any conviction. I think what has spooked investors has been the pretty constant calls on capital, and just not getting the revenue.

A couple of points (+ve and -ve)
– I noticed Bevin Slattery committed to SLC, even at the expense of not participating in MegaPort MP1 corporate events (to his detriment, with MP1 firing and having risen from $2 to $10+ in the last 30 months, even while going to the market along the way)
– the INDIGO cable on budget and running; partners AARNet, Google, Indosat Ooredoo, Singtel, SubPartners (SLC) and Telstra announced in May that the INDIGO subsea cable system was ready to be deployed by consortium members, following the on-schedule completion of the INDIGO West (4,600km Singapore to Perth) and INDIGO Central (4,600km Perth to Sydney cables. Featuring new spectrum-sharing technology, each consortium member can independently leverage the new cable system to upgrade their networks and enable capacity increases on demand.
– by its very nature, choke points exist between countries where terrestrial infrastructure can’t be added; submarine cabling is expensive but can deliver large amounts of data when laid.
– not sure with their Hong Kong network; is it impacted by recent political troubles? Probably.
– and the whole NBN issue must bring pricing pressure to each and all participants and competitors.
– and just as an aside, now this infrastructure is in place to “further leverage Superloop’s technology platforms for bandwidth-intensive in-building and on-campus demands in Australia, Singapore and Hong Kong”, would I invest in student housing for Asian students?
– Australia’s Academic and Research Network (AARNet) is owned by the Uni’s and CSIRO, and this network connects over two million users—researchers, faculty, staff and students—at institutions across Australia to the commercial Internet, to their peers nationally and globally,..