(Bloomberg) -- Data-center real estate investment trust Digital Realty Trust Inc. sold $1.5 billion of stock in the largest sale of new shares by a public company in the US since March, as Corporate America and many of its biggest investors resume the heady pace set in the first quarter.

Companies and shareholders raised nearly $46 billion in the first three months of 2024 via sales of new and existing shares, excluding initial public offerings, data compiled by Bloomberg show. That’s the busiest stretch since the third quarter of 2021, and as the earnings-season pause comes to a close, observers are expecting more deals following that playbook.

“The follow-on and block market has been very healthy and we expect that to continue with earnings moving past,” said Evan Riley, head of equity capital markets Americas at BNP Paribas SA. “You have companies coming out of the blackout periods, so the secondary activity will take up the bulk of the near-term calendar.”

Roughly $52 billion has been raised this year to date through US sales of new and existing shares separate from IPOs, on pace to return to pre-pandemic norms around the $150 billion mark.

The increase joins a broader strengthening in equity capital markets activity, including US IPO market volume rising by about 65% in the year to date compared to the same period in 2023, according to data compiled by Bloomberg. With the calendar for company debuts in wait-and-see mode following sizable deals like Viking Holdings Ltd.’s $1.8 billion IPO, bankers anticipate follow-on share sales, block trades and convertible debt will make up the bulk of activity in the coming weeks.

Companies tap investors by selling new shares in order to bolster their balance sheets with much-needed cash, while long-time holders can capitalize on rallies to sell down stakes.

Stock’s Best Day

Digital Realty capitalized on a nearly 50% rally in its shares over the year prior to the sale. Its quarterly results last week powered the stock to its best day in about six months, setting the stage for the sale of about 10.5 million new shares. 

The deal comes after the typical lull seen in April, a quiet period for share sales because of restrictions around quarterly results. Listed companies raised just $4.64 billion during the month, data compiled by Bloomberg show.

Digital Realty is the second largest US sale of new shares this year by a publicly traded company, coming in behind AI stock darling Super Micro Computer Inc. which raised $1.75 billion after a nearly 1,000% share price boom over a 12-month stretch. 

The largest deals by already-listed firms have consisted of investors offloading large amounts of existing stock, led by JAB Holding Co. selling a block of Keurig Dr Pepper Inc. shares to net $2.9 billion while Borse Dubai Ltd. trimmed its stake in Nasdaq Inc. in March with a $1.8 billion sale.

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