Serko seeks $15 million

LISTED travel technology provider Serko today announced a capital raising initiative, seeking NZ$15m in funding to allow the company to expand into new international markets.

Serko recently boosted its capital base from NZ to include the Australian Stock Exchange ( TD 26 Jun), and also signed a letter of intent with Flight Centre ( TD 31 Jul) which is expected to see revenue grow up to 30%.

The underwritten offer is priced at NZ$2.75 per share, a discount of just 3.2% to the company’s last traded price yesterday.

There is no share purchase plan in connection with the placement but certain NZX participants will be invited to participate on behalf of their NZ and Australian retail shareholder clients.

Serko said it was raising the extra funds to allow it to invest in revenue-driving initiatives, including the establishment of sales and support functions in new international markets.

The company also aims to accelerate product development and integrate local content and functionality in overseas jurisdictions, “which are required in order to appeal to a wider range of Travel Management Companies and corporate users”.

Serko said the NZ$15m would also provide funding capacity for potential acquisitions that delivered additional customers.

The company is currently rolling out its new Zeno platform, with about 65% of transactions set to switch over from Serko Online.

Revenue for the 12 months to 31 Mar has increased 28% to NZ$18.3 million, with the company reporting a maiden profit of NZ$2m before tax, compared to a $5.3 million prior year loss.