(Alliance News) - Kape Technologies PLC on Tuesday said that it intends to raise between USD110 million and USD200 million to expand the business through acquisitions.
Shares will be placed at 265 pence per share, a discount of 9.2% to Kape's 292p closing price on Monday.
Shares in the Isle of Man-based digital privacy and security business were trading 7.3% lower at 270.65 pence each in London on Tuesday morning.
Unikmind Holdings Ltd has agreed to subscribe for 35.5 million shares at the placing price, equivalent to USD110 million. Unikmind already has a 64% holding in Kape. Unikmind is Teddy Sagi's company. Sagi invested in Kape in 2012 and has financed many of the company's deals through Unikmind.
Retail investors will also be able to participate in the fundraising through the PrimaryBid platform.
The placing to institutional investors opened immediately after the announcement was made on Tuesday morning, while the retail offer will open on Wednesday. The offering is expected to close at 1800 on Thursday.
Kape said market conditions have created "a number of highly attractive potential acquisition opportunities at compelling valuations". Over the last five years, Kape has deployed over USD1.25 billion in seven acquisitions.
The directors said that the fundraising will enhance Kape's ability to "accelerate its growth through acquisitions."
The company also announced on Tuesday the appointment of Dan Pomerantz as a non-executive director.
Pomerantz founded ExpressVPN with Peter Burchhardt in 2009. The company acquired ExpressVPN for USD936 million in December 2021. Under the terms of the acquisition, Burchhardt retained the right to appoint one non-executive director to the board for as long as ExpressVPN founders retained at least 5% of Kape's ordinary shares.
By Chris Dorrell; chrisdorrell@alliancenews.com
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