- Computer hardware and software distributor Dicker Data (DDR) is looking to raise $55 million to support its long-term growth objectives
- This amount will be raised through a $50 million placement and a $5 million share purchase plan
- Approximately 7.5 million shares will be issued through the placement at a price of $6.70 each
- In regards to the share purchase plan, eligible shareholders will have the opportunity to purchase up to $30,000 worth of shares
- As previously announced, Dicker Data has not experienced any material changes to its sales pipeline thus far from COVID-19
- In fact, the company recently recorded its largest-ever revenue month as many people are now working from home
- Dicker Data has entered a trading halt with shares last trading for $7.18 each
Computer hardware and software distributor Dicker Data (DDR) is looking to raise $55 million to support its long-term growth objectives.
The $55 million will be raised through a $50 million placement and a $5 million share purchase plan.
“The equity raising will be used to support Dicker Data’s long-term growth objectives, and ensure we remain well positioned as Australia’s leading value added technology distributor,” Chairman and CEO David Dicker said.
Placement
To raise the $50 million, approximately 7.5 million new shares will be issued to institutional investors at a price of $6.70 each.
This price represents a 6.7 per cent discount to the closing price of $7.18 from May 6.
The purchased shares are expected to settle on May 12 and be issued to begin trading on May 13.
Share Purchase Plan
In regards to the share purchase plan, eligible shareholders will have the opportunity to purchase up to $30,000 to raise $5 million.
The exact price is not yet known, but it will be less than the placement or have a two per cent discount to the volume-weighted average price from the five-days up to, and including, the closing date.
The share purchase plan is expected to open on May 14, close on May 29, and be allocated on June 5. Shares will then begin trading on the ASX on June 9.
Market Update
As announced in its Q1 update from April 29, Dicker Data has not experienced any material changes to its sales pipeline thus far from COVID-19.
With an increase in people working from home, the company saw a surge in demand for software and consequently recorded its largest ever revenue month.
In the three months leading up to the end of the March quarter, Dicker Data generated a revenue of $463.9 million – up 19.9 per cent from the same time last year.
The company has already seen an increase in sales for the beginning of Q2.
In April of this year Dicker Data received $163.7 million in revenue – a 37.7 per cent increase from one year ago.
While this performance provides a strong start for Q2, it is too early in time to determine how performance will go in the second half of the year.
As a result, Dicker Data cannot provide its guidance in terms of expected growth.
Dicker Data has entered a trading halt with shares last trading for $7.18 each in a $1.164 billion market cap.