This morning New Zealand-based software company Gentrack Group Ltd (ASX: GTK) announced a capital raising equivalent to NZ$90 million and its ASX shares entered a trading halt.
Gentrack is a $500 million software company, specialising in services for the energy, water and airport sectors.
Recently, Gentrack purchased UK-based analytics business, Evolve, for NZ$44.2 million as part of its ongoing expansion into the UK water and energy utilities sector.
As Gentrack announced when the deal was made, the purchase would be funded with debt. However, it also said it will seek to pay down the debt associated with the Evolve acquisition and three other recent acquisitions by issuing new shares.
“Proceeds raised through the Offer will be used to pay down bank debt, providing capacity to support future debt-funded acquisition and growth opportunities,” Gentrack said in an ASX announcement today.
Under the share offer, Gentrack will sell 1 new share for every 5.77 owned by investors on July 6th. The offer price is NZ$6.19 per share (or AUD equivalent), which compares to the current NZ-listed share price of around $7.
Two of Gentrack’s largest shareholders, including Hg and Chairman John Clifford, will take up shares in the offer, the company noted.
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