In a statement to the market on Tuesday, Iress said it had completed a $150 million placement announced on Monday, the same time the company announced it had agreed to acquire 100 percent of the shares of platform provider OneVue.
The group said shares in the rights issue were being offered at $10.42 per share and had “attracted significant interest” from sophisticated and institutional investors.
Proceeds from the placement will be used to further strengthen Iress’ balance sheet, provide flexibility to respond to opportunities in the current environment and part fund the proposed acquisition of OneVue announced yesterday,” said Andrew Walsh, Managing Director of Iress.
“We are pleased with the level of shareholder support we have received for the fundraising. »
The group announced that it will now extend the capital raising to existing retail shareholders at a similar price level. The retail plan would have a fundraising target of $20 million but could be extended depending on shareholder demand, the group said.
Announcing the capital increase on Monday, Mr Walsh said it had been launched primarily to reduce the group’s anticipated debt levels following the completion of the OneVue purchase.
“Although the acquisition was considered on a debt financing basis and could be completed with available debt, we have decided to adopt a more conservative financing strategy given the current economic environment ” he said.
