Gorilla Technology prices $125M bond to fund NeutraDC Batam project

Gorilla Technology Group Inc. raised $125 million through a private placement of 7.50% senior unsecured convertible notes to fund advance payments for its NeutraDC Batam data center project in Indonesia, the company said Wednesday.

The London-based provider of security intelligence, network intelligence and IoT technology priced $125 million aggregate principal amount of 7.50% Senior Unsecured Convertible Notes, Series B due 2031, in a private placement to institutional investors under Section 4(a)(2) of the Securities Act. The offering is expected to close on or about July 17, subject to customary conditions.

The notes carry an initial conversion price of approximately $25.48 per ordinary share, representing a 52% premium over the $16.77 closing price on July 14. The conversion price includes two reset mechanisms: a downward floor of $8.00 per share and an upward cap of $31.85, equivalent to a 90% premium. Interest is payable semi-annually at 7.50%, with the company retaining the option to pay in cash or ordinary shares.

Proceeds will fund advance payments to secure committed data center capacity and the equity portion of equipment purchases for the NeutraDC Batam project, which Gorilla announced on June 23. Any remaining funds will go toward general corporate purposes. Benchmark, a StoneX company, and StoneX Financial Inc. are acting as joint placement agents.

The offering is Gorilla's second convertible bond deal in six weeks. On June 3, the company priced $107 million of 7.50% convertible notes due 2031, led by Highbridge Capital Management, to fund equipment deployment for its second project with Yotta Data Services Private Limited in India. The two deals bring Gorilla's total convertible debt raised to $232 million since early June, underscoring the company's aggressive push into data center infrastructure across Asia.

Gorilla's expansion into Indonesia places it in a rapidly growing market. Southeast Asia's data center capacity is projected to more than double to 5.2 gigawatts by 2028, according to a report from Cushman & Wakefield, driven by hyperscaler demand and government digitalization initiatives. Batam, an industrial island south of Singapore, has emerged as a hub for data center development due to its proximity to the city-state's subsea cable landing stations and lower land and energy costs.

The company competes with larger players including Equinix Inc., which operates more than 260 data centers globally, and regional providers such as Indonesia's PT Telekomunikasi Indonesia, which runs the NeutraDC brand. Gorilla's differentiated approach combines its security intelligence and IoT software with data center infrastructure, offering what it describes as integrated AI and edge computing solutions for government and enterprise clients.

Gorilla shares closed at $16.77 on July 14, giving the company a market capitalization of roughly $480 million. The stock has gained about 12% since the company announced the Batam project on June 23. The notes are being sold in a private placement and have not been registered under the Securities Act; the company has agreed to file a resale registration statement on Form F-3 with the SEC.

This article is for informational purposes only and does not constitute investment advice.