Monitise says placing is on the cards

Mobile banking technology firm Monitise has admitted it is in discussion to raise up 100m pounds.

Mobile banking technology firm Monitise has admitted it is in discussion to raise up 100m pounds.

The company said it was talking to Canaccord Genuity and certain institutional and strategic investors "to take advantage of significant opportunities represented by mobile banking, payments and commerce".

Proceeds from the proposed placing would be used to fund new Mobile Money products for financial institutions and payments companies, the firm said, particularly in terms of mobile commerce capabilities.

The announcement was forced by press speculation into Monitise's plans to raise money.

Chief Executive Alastair Lukies said the business was seeing enormous demand for Mobile Money services.

"The value of payments and transfers alone handled by our commercially established technology platform is now surpassing $25bn on an annualised basis, compared with around $1bn a year ago," he said.

"Proceeds from our proposed capital raising will be used to rapidly scale our business and enhance our Mobile commerce capabilities.

"With new partnerships and collaborations involving our technology platform, we intend to fully execute on the opportunity of creating value for our partners, customers and shareholders alike," he added.

Monitise also said an application to move from AIM to the London Stock Exchange's main market was under consideration for 2013.

Investors sold out of the stock following the announcement, pushing the share price down 5.2% by 11:00.

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
6 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Share tips of the week – 3 February 2023
Investments

Share tips of the week – 3 February 2023

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
6 Feb 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
6 Feb 2023