SKO
21/12/2015 08:30
PLACE
PRICE SENSITIVE
REL: 0830 HRS Serko Limited
PLACE: SKO: Serko Raises $8 million in Institutional Placement
Serko Raises $8 million in an Institutional Placement
Trading Halt Lifted
Serko Limited (NZX:SKO) is pleased to confirm the successful completion of a
targeted placement raising NZ$8.0 million to fund the company's growth
strategy.
Under the placement Serko will issue 9,523,809 new shares at a price of $0.84
per share. The placement price represents a premium of 5.0% to Serko's
closing share price on 17 December 2015 of $0.80 per share, immediately
before Serko entered its trading halt.
There was strong institutional support expressed for the company and the
Serko Board decided to raise more than it was initially targeting in order to
strengthen its balance sheet. Moreover, there was demand for shares above the
$8.0 million of subscriptions accepted. Participants in the placement
include both new and existing institutional investors in Australia and New
Zealand. The two Serko founders, Darrin Grafton (CEO) and Bob Shaw (Chief
Strategy Officer), participated in the placement by subscribing for in
aggregate $682,000 of shares. Mr. Grafton and Mr. Shaw reduced their
initial intended level of participation to facilitate the introduction of new
institutional investors.
Settlement of the placement is expected to occur on 22 December 2015.
Investment bank, Cameron Partners, acted as financial adviser to Serko on the
placement.
In addition to the institutional placement, Serko will also offer each
eligible New Zealand registered shareholder the opportunity to subscribe for
up to NZ$15,000 worth of shares through a Share Purchase Plan (SPP). The
SPP is capped at NZ$1 million in total to take the total capital raising to a
maximum of NZ$9.0 million.
All new shares issued by way of the placement and SPP will rank equally with
existing Serko ordinary shares currently on issue.
Further details of the SPP and the SPP booklet are expected to be released to
shareholders in late January 2016.
Serko intends to use the proceeds of the capital raising to invest in its
growth strategy, including to:
1. Fund the rollout of Serko's new product aimed at small to medium-sized
businesses (SMEs).
2. Invest in increased brand support and raise product awareness.
3. Increase marketing spend to support its reseller network.
4. Pursue revenue growth to achieve Serko's short-term goal of reaching
cash-flow break-even.
The Serko Board also announces that it is considering exploring a foreign
exempt dual-listing on the Australian Stock Exchange (ASX) during 2016.
Serko looks forward to further growing and developing the business during
2016.
ENDS
For investor relations queries please contact:
Tim Bluett, Chief Financial Officer, Serko
+64 9 309 4754
[email protected]
About Serko
Serko is Australasia's leading online travel booking and expense management
company for businesses and is listed on the NZX Main Board (NZX:SKO). With
its HQ in Auckland New Zealand, and with offices in Sydney Australia, Xi'an
City China and Gurgaon, India, Serko employs more than 130 people worldwide.
Serko Online is an integrated Online Booking Tool used by administrators and
travellers to book flights, accommodation and car hire from the broadest
possible set of travel providers. The OBT ensures that travel bookings comply
with corporate travel management policy without limiting the user's choice of
travel provider.
Visit www.serko.com for more information
End CA:00275430 For:SKO Type:PLACE Time:2015-12-21 08:30:09
