Booking app developer Serko raises $15m in placement

AUCKLAND: Serko shares resumed trading yesterday after a $15 million placement was oversubscribed, raising funds for the online travel booking app developer to accelerate its global growth plans.

The Aucklandbased company sold almost 5.5 million shares at $2.75 apiece in a placement to 12 institutional investors in New Zealand and Australia and drew strong participation from retail investors, it said in a statement. The offer was at a 3.2% discount on the last trading price of $2.84.

‘‘The placement provides Serko with greater flexibility to both accelerate organic growth opportunities and execute potential acquisitions,’’ chief executive Darrin Grafton said.

‘‘We have been very pleased with the level of support from our current shareholders and we welcome a number of new investors on to our register.’’

Last week, Serko raised its revenue expectations for the year ending March 31, 2019, for sales growth of 20%30% on 2018’s $18.3 million. It had previously predicted sales growth of 15%30%.

The company posted its maiden profit in 2018 and has started expanding into the northern hemisphere, where it sees new opportunities. Its shares have been in uncharted territory as investors were impressed by the successful execution of its plans last year, rising 30% so far this year and resulting in Serko completing a secondary listing on the ASX.

Serko held cash and equivalents of $5.2 million as at March 31, generating a positive operating cash flow in the year of $1.4 million, compared with an outflow of $1.6 million a year earlier.

The board has a policy of maintaining strong cash reserves and in its annual report, said directors would ‘‘monitor Serko’s capital requirements in light of the funding needed to execute growth opportunities, both organic and inorganic’’. — BusinessDesk