Atturra Limited's Strategic $66.6 Million Capital Raising for Inorganic Growth
ATTURRA LIMITED (ATA) Share Update November 2024 Wednesday 13th
Atturra Limited Announces $66.6 Million Capital Raising for Growth
Atturra Limited, a leading advisory and technology solutions provider, has announced a significant capital raising initiative to fuel its growth strategy through strategic acquisitions and enhance its financial flexibility.
Instant Summary:
- Capital raising of up to $66.6 million through a placement and share purchase plan.
- Funds to support three potential acquisitions and provide balance sheet flexibility.
- Tranche 1 to raise $26.5 million from institutional investors.
- Tranche 2 to raise $34 million, subject to shareholder approval.
- Non-underwritten share purchase plan to raise up to $6.1 million.
- Acquisitions expected to contribute $6.5m-$7.5m EBITDA by FY26.
Overview of the Capital Raising
Atturra Limited (ASX: ATA) has announced a capital raising initiative to generate up to $66.6 million. This initiative includes a placement to raise approximately $60.5 million and a share purchase plan (SPP) to raise up to $6.1 million, both priced at $1.05 per share.
The capital raising will be conducted in two tranches. Tranche 1 aims to raise $26.5 million from institutional investors, while Tranche 2 seeks $34 million from 263 Finance Pty Limited, a substantial shareholder subject to shareholder approval.
Strategic Acquisitions
Atturra is in advanced discussions for three acquisitions that align with its growth strategy. These acquisitions are expected to enhance Atturra's capabilities in managed network services, supply chain technology, and enterprise content management (ECM).
The acquisitions are projected to contribute $6.5 million to $7.5 million in EBITDA by FY26, with a total consideration of approximately $45 million. If successful, these acquisitions will be EPS accretive on a FY25PF basis.
Share Purchase Plan Details
The non-underwritten SPP offers eligible shareholders the chance to purchase up to $30,000 worth of new shares at $1.05 each. This represents a 4.5% discount to the closing price on 12 November 2024.
The SPP will open on 20 November 2024, with shares expected to commence trading on 12 December 2024. Atturra reserves the right to scale back applications if oversubscribed.
This capital raising is a strategic move by Atturra to bolster its growth through acquisitions, which could positively impact its market position and financial performance. The initiative reflects confidence in its expansion strategy and potential to enhance shareholder value.
Investor Reaction:
Analysts are likely to view the capital raising as a positive step towards strengthening Atturra's market presence and capabilities. However, the success of the acquisitions and their integration will be critical to achieving the anticipated financial benefits.
Conclusion:
Atturra's capital raising is a pivotal step in its growth journey. Investors should watch for updates on the acquisitions and their impact on Atturra's financial performance. Engaging in the share purchase plan could be a strategic move for those confident in Atturra's growth prospects.