Kape Technologies PLC (LSE:KAPE) said it plans to raise between US$110mln and US$200mln to capitalise on “highly attractive potential acquisition opportunities.”
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, agreed to subscribe to the placing for 35.5mln shares, which is equivalent to roughly US$110mln at the placing price (given exchange rates).
The placing price represents a 4.6% discount to the 30-day volume weighted average price of its shares to 12 September.
Kape insisted the ongoing 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 is now looking to expand its software-as-a-service customer reach, broaden its product range, accelerate market strategy and strengthen its balance sheet to fuel further growth.
The directors believe the fundraising, coupled with Kape’s strong free cash flow generation and existing debt facilities of US$200mln, will enhance its ability to speed up growth via acquisitions.
Kape also announced Dan Pomerantz has been appointed as a non-executive director of the company.
Shares fell 7.3% to 270.8p following the news.