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Wynyard raises $30m in placement to drive growth

Wynyard Group [NZX: WYN], whose shares have soared 158 percent since they listed in July, raised $30 million in a placement to drive growth plans, and will seek a further $5 million in a share purchase plan from existing investors.

The Auckland-based company sold 11.1 million shares at $2.70 apiece, a 5.6 percent discount to the last trading price, to a range of institutional and qualified investors in New Zealand, Australia and the UK, it said in a statement. The shares, which last traded at $2.86, were halted yesterday for the capital raising and will resume trading when the market opens at 10am. The offer was underwritten by UBS New Zealand, which was the sole arranger of the placement.

Wynyard will announce details of the share purchase plan in the coming month, pricing them at the lower of either $2.70 or the average closing price of the five days up to and including the offer's closing date.

The intelligence software developer raised $65 million in an initial public offer last year of which $25.8 million was used to fund growth, with the rest paying former parent Jade Software for intellectual property listing costs, and intercompany debt.

Last month Wynyard posted a pro-forma loss of $11.2 million for calendar 2013, just above the $10.1 million shortfall forecast in its June prospectus. Revenue more than doubled to $21.7 million, beating its forecast of $21.5 million and the company said it expects to beat its 2014 sales forecast of $27 million.


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Comments and questions

yet again the retails investors left out in the cold whilst mates and others get to pick up the shares. Another reason for retail investors to not invest in NZX and continue in property.
When will these directors get with the programme and start to treat their retail investors with respect instead of contempt.

...there has got to be more to invest in than property or hyper-valued loss making technology companies.

If you read the article you will see they are undertaking an SPP, at the same price, to retail investors. Respect! about seize the day...well done to realise and act on the opportunity to issue more capital at such a great price for existing shareholders. Respect!

Hi LastManStanding, one of the WYN boards key objectives with this placement was to make sure our loyal Kiwi retail investors could participate through a "NZ$5 million Share Purchase Plan (SPP) to eligible shareholders"
Craig Richardson, Managing Director Wynyard Group