Dataworks launches $4.2m capital raise to fund growth

Dataworks Group (ASX: DWG) has launched a capital raising of up to $4.24 million to strengthen its balance sheet and fund the next stage of growth across its government and regulated-market technology business.

The ASX-listed company has secured firm commitments for a $3 million placement to sophisticated and professional investors, with a further $1.24 million potentially available through a one-for-10 non-renounceable entitlement offer to eligible shareholders.

Both components will be priced at 12c per share, representing a discount of about 20% to Dataworks’ 15c closing share price on September 10 and an 11% discount to its 15-day volume-weighted average price of 13.5c.

Dataworks said the capital raising is aimed at giving the company greater financial flexibility as it moves to scale its existing government programs and pursue opportunities across its domestic and international pipeline.

The funds are expected to be directed towards debt repayment and working capital, mobilisation and delivery of government contracts, commercial execution and selective investment in platform and product development, with some proceeds also covering the costs of the raise.

Executive chairman Julian Babarczy said the company was entering the raising from a stronger operating position than in previous years, pointing to its established regulatory technology platforms, government customer base and positive operating cash flow in FY26.

Dataworks currently operates the National Self-Exclusion Register, or BetStop, in Australia, which has been running since 2023 and is integrated with all licensed online wagering operators.

Its Canadian operation, BetGuard, provides the self-exclusion platform for iGaming Ontario and entered live operation in May 2026. The Ontario contract combines enterprise technology with managed services and has a term running to 2031, with the combined enterprise contract valued at about $4 million a year.

Dataworks has also recently undertaken a paid planning and mobilisation engagement for the NSW Government, generating about $536,000 in fixed-price revenue over eight weeks from September. The latest raising comes as Dataworks positions its existing technology infrastructure as a platform for operating leverage.

The company argues that its government-grade security architecture, established platforms and existing operating capability mean new deployments can be added without requiring an equivalent increase in its underlying cost base.

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