The Isle of Man’s AIM-listed Kape Technologies plans to raise between US$110mln and US$200mln to capitalise on “highly attractive potential acquisition opportunities,” it has said after announcing record half-year results.
The digital privacy and security software business will raise the funds by issuing shares at 265p by way of a bookbuild.
Unikmind Holdings Ltd, the company’s majority shareholder, has agreed to subscribe to the placing for 35.5mln shares, equivalent to roughly US$110mln at the placing price. The placing price represents a 4.6 per cent discount to the 30-day average price of its shares to 12 September.
Kape said that turbulent market conditions have increased the number of potential appealing acquisitions at compelling valuations, which it thinks would enhance the company’s offerings.
With over US$1.25bn poured into mergers and acquisitions in the last five years, the company says it is looking to expand its software-as-a-service customer reach and broaden its product range. It currently has debt facilities of around US$200mln. Kape also announced that Dan Pomerantz has been appointed as a non-executive director of the company.
Shares were down 6.8 per cent this morning at 271.92p following the news.
