Australia's HMC Capital hits record high on hiking AUM forecast, upbeat earning guidance
Nov 27 (Reuters) -Australian asset manager HMC Capital's shares rose to an all-time high on Wednesday, after the company bumped up its assets under management (AUM) forecast and signalled higher full-year earnings.
Shares of HMC HMC.AX rose as much as 7.3% to a record high of A$13.160 in early trade, outpacing a 0.5% jump in the benchmark S&P/ASX 200 index .AXJO.
HMC, founded by banker-turned-investor David Di Pilla, said it expects its AUM to grow to over A$50 billion ($32.34 billion) within the next three to five years.
That compares to its previous medium-term forecast of A$20 billion, which the company now expects to achieve in fiscal 2025.
The Sydney-based firm also said it was on track for pre-tax operating earnings of 70 Australian cents per share in fiscal 2025, up 89% year over year.
It cited outsized performance by its private equity fund, HMC Capital Partners Fund I, along with income expected from its recently established A$2.75 billion digital infrastructure trust, DigiCo REIT, as the reasons behind the jump in earnings.
Last month, HMC bought Global Switch Australia in a A$1.94 billion deal, as it looks to tap into the booming data centre sector and expand into more infrastructure investments.
HMC's shares have doubled in value this year, including session's gains.
($1 = 1.5463 Australian dollars)
Reporting by Aaditya Govind Rao in Bengaluru; Editing by Alan Barona
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