Vocus completes $14.9m capital raising, looking for another $7.5m
- 05 July, 2012 12:05
Vocus Communications has completed a $14.9 million capital raising and is looking to raise another $7.5 million.
The telco placed 9.15 million shares on the market to institutional and sophisticated investors at $1.63 per share, with the placement scheduled to occur 11 July 2012. Shares will be allocated 12 July.
Vocus also announced a share purchase plan for existing shareholders to raise $7.5 million in additional capital.
James Spenceley, CEO of Vocus, told Computerworld Australia funds from the capital raising will be used to provide working capital and fund the telco’s growth strategy, which is based on accelerating the company's fibre rollout and continuing to expand its data centres in accordance with customer demand.
"We’re still building most of the current business that we have, but we’re continually taking new orders. We have general business rules around where we’re building, but we evaluate all the opportunities we get," he said.
Vocus will also be eyeing off acquisition opportunities, recently acquiring New Zealand-based data centre and Cloud provider, Maxnet, for $7.3 million (NZ$9.5 million). However, Spenceley said future acquisitions would most likely be Australian companies, "but we’re open to opportunities".
Spenceley said he is uncertain over what time frame the capital will be spread out.
"We’ve raised enough capital that we’re very comfortable. It’s going to come down to the speed at which we sell fibre services and roll out new fibre … Vocus itself is a strongly profitable business, so we generate our own cash. It’s very much around timing and obviously potential acquisitions would [affect] that," he said.
Vocus is looking at a stellar year, with revenue to increase 45 per cent to $47 million for the full financial year for 2012. The growth has been attributed to a number of key acquisitions and growth in fibre and data centre services.
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