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i am happy with 3 to 4 % a day , nice
Moving nicely now - overhang cleared/excess demand from institutions driving the price up?
Cheers Rivaldo
I feel we may get news of an acquisition very soon.
Progressive Equity Research have issued a new note today. They've increased their forecasts - these are the new estimates:
this year : 14.2c EPS
next year : 15.8c EPS
2022 : 17.5c EPS
Here's the summary:
"From strength to strength
Fundraise providesfuture M&A firepower
Kape has announced that it has raised gross proceeds of $115.5million through a significantly oversubscribed placing and retail offer of 59.2 million shares at 150p and will use $72 million of the proceeds to buy out the two major vendors of PIA, the transformational deal which the Group completed at the end of 2019. The remaining $43.5million will be used to strengthen the Group’s balance sheet as it looks to select further acquisitions. There is an additional tax-related cashbenefit of around $50 million over 15 years that is now available to Kape following this change to the PIA deal structure.
This seems an intelligent way of removing any potential share overhang while also adding further to the group’s M&A firepower. Kape will cancel the shares which it acquires from the vendors and will not issue the vast majority of the deferred shares. With trading still robust and guidance unchanged, we make no alteration to our underlying business assumptions. Our EPS estimates reflect the changes to the shares in issue, both existing and prospective.
?The Company’s majority shareholder, Unikmind, has subscribed for shares worth $55.7millionand, following Admission, will hold approximately 65% of the enlarged share capital. The Company’s directors have participated in the Placing in the amount of $175,000 in aggregate.
?In a brief update on trading, Kape states that trading during Q3 2020 wasat the upper end of management’s expectations with user growth in the Privacy division reaching a run rate of 14% during the quarter. The integration of PIA is still expected to be completed by the end of 2020.
?Guidance for FY 20E is reiterated: revenues for the year are expected to be between US$120-123 million, with adjusted EBITDA expected to be US$35-38 million.
?The announcement states that current market conditions potentially present a number of acquisition opportunities which the capital raise will allow Kape to fully exploit. The extra firepower now available suggests to us that we could see another reasonably sizeable deal at some stage.
With trading continuing to be well on track for the full year, we believethat this agreement enhances Kape’s ability to take further advantage of the current business environmentthrough executing on its acquisition strategy."