Monitise falls following successful placing

Monitise is down following its successful placing of the first tranche of shares in a 100m pound fundraising.

Monitise is down following its successful placing of the first tranche of shares in a 100m pound fundraising.

The total fundraising entails placing 333.3m shares at 30p in two tranches. The first tranche of 114m shares in a 'firm' placing with institutions will now enter the market on December 10th. The second tranche of 219.2m shares, in a 'conditional' placing with institutions, is expected to hit the trading floor on December 27th.

This placing equates to a 22.5% dilution of the current shareholder base of 1.1bn shares.

Monitise, which provides the software for payment systems on mobile phones, will use the proceeds to fund new Mobile Money products for financial institutions and payments companies.

The company, with a market cap of about £340m, has yet to make a profit but house broker Seymour Pierce has a 'Buy' recommendation on it with a price target of 60p.

The broker commented: "Management believes the proceeds from the placings are expected to drive revenue expectations 'substantially higher' over the next 2-5 years and lead to only a slight delay in near-term profitability. Management reiterated its full year 2013 revenue guidance of $110m but has not provided any guidance for full year 2014."

At 15:50 the shares were down 3.5p or 9.85% at 29.75p.

CM

Recommended

Britain’s ten most-hated shares – w/e 9 August
Stocks and shares

Britain’s ten most-hated shares – w/e 9 August

Rupert Hargreaves looks at Britain's ten most-hated shares, and what short-sellers are looking at now.
10 Aug 2022
Aviva: One for income investors to tuck away
Share tips

Aviva: One for income investors to tuck away

Insurance giant Aviva is one of the highest yielding stocks in the FTSE 100 – and it’s cheap, too, making it a tempting target for income investors. R…
10 Aug 2022
Director dealings w/e 5 August: what company insiders are buying and selling
Stocks and shares

Director dealings w/e 5 August: what company insiders are buying and selling

Directors’ share dealings can often give investors an insight into the sentiment of company insiders. Here are some of the biggest deals by company di…
9 Aug 2022
Britain’s most-bought shares w/e 5 August
Stocks and shares

Britain’s most-bought shares w/e 5 August

A look at Britain’s most-bought shares as of 5 August, providing an insight into how investors are thinking and where opportunities may lie.
9 Aug 2022

Most Popular

Are UK house prices finally heading for a crash?
House prices

Are UK house prices finally heading for a crash?

The latest house price figures show a fall of 0.1% in July. With interest rates rising, inflation hitting double figures and a recession on the cards,…
5 Aug 2022
Brace yourself for the return of rationing
Economy

Brace yourself for the return of rationing

Russia is turning off the cheap energy. That is already leading to belt-tightening, says Matthew Lynn. Who will suffer most, and which sectors will th…
5 Aug 2022
Fear of missing out – what should investors do now?
Investment strategy

Fear of missing out – what should investors do now?

Markets have rallied from their mid-June lows. But if you missed out, as most investors did, what should you do now? Max King explains.
8 Aug 2022