AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Software solutions provider, Bravura Solutions Limited (ASX: BVS) has announced a equity Raising of A$165m to enhance balance sheet flexibility, providing additional capacity to invest in growth opportunities.
In an announcement made on 2 May 2019, the company announced a A$165m fully underwritten institutional placement to enhance balance sheet flexibility, increasing the capacity for strategic acquisitions.
Today, the securities of Bravura were placed in a trading halt at the request of BVS. As per the companyâs request, the trading halt will be lifted on 6 May 2019 or at the time at which the company makes an announcement regarding the outcome of the final placement.
It is expected that the final Placement Price will be announced on, 3 May 2019 prior to the resumption of trading in Bravura.
As per the companyâs announcement, the Placement has been underwritten at a floor price of A$5.50 per share, demonstrating a discount of 11.9 percent compared to Bravuraâs latest closing price of A$6.24.
In April 2019, the company had submitted a non-binding indicative proposal to acquire all of the shares in GBST Holdings Limited (ASX:GBT) by way of a scheme of arrangement (GBST Indicative Proposal). The company intends to use the proceeds of the placement to support the strategic acquisition of GBST Holdings.
In the first half of FY19, the company delivered revenue growth of 24%, EBITDA growth of 28% and NPAT growth of 15%. In the half-year period, the companyâs Wealth Management revenue increased by 24% and EBITDA increased by 36%, following two new Sonata contracts, expanding project work and increasing demand from existing clients. Further, the companyâs Funds Administration revenue also increased by 23% in the half year period. During the half year period, the company experienced strong demand underpinned by clientsâ need for speed to market for new products, navigating maturing and evolving regulation and extracting operational efficiencies. In the first half of FY19, the company reported Recurring revenue growth of 31% compared to 1H18, providing strong visibility around its long-term earnings profile and future cash flow expectations.
Today the company has confirmed its FY19 guidance, with FY19 EPS growth expected to be in the mid to high-teens.
The company is currently exploring various growth opportunities including acquisitions and product functionality enhancements to support expansion in existing geographies and into new geographies and markets.
Currently, there are various adjacent geographic markets which are having similar characteristics likes the market in which Bravura is currently operating. The company can pursue these opportunities through acquisitions, development of co-funding with an existing client with further R&D spend, or with any combination of these.
BVSâs shares last traded at $6.240 with a market capitalization of circa $1.34 billion as on 2 May 2019. In the past six months, the share price of the company increased by 41.08% as on 30 April 2019.
Disclaimer
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
