- Income Asset Management (ASX:IAM) has seen a placement receive stronger-than-expected interest
- The company was seeking to raise $3 million but has now found itself with $4 million
- IAM noted this occurs even despite a challenging larger market backdrop
- Existing investors were the predominant source of interest
- Shares last traded at 10.5 cents
Income Asset Management (ASX:IAM) has received commitments for $4 million in funds in its latest placement.
IAM actually got a better deal than it was looking for – originally targeting $3 million in funds, but now the firm finds itself with an extra million on top.
The financials player has also flagged that it is to open an office in Perth, dipping its feet in the western waters after a to-date east coast existence.
For this reason, the company is pleased with its $4 million figure – funds raised will in part go towards establishing a western presence.
Two tranches
The placement will see 50 million shares issued at 8 cents per share in two lots.
The first will comprise 31 million shares to raise $2.48 million while a second tranche will issue 19 million shares for $1.52 million; that second tranche is subject to a green tick from shareholders.
Directors and management say they’ll chip into the tune of $0.14 million.
Management comment
“The new capital raised will be used to rebalance the cash position and to address the increasing demand in secondary trading, where IAM can use its balance sheet to generate revenue,” IAM CEO Jon Lechte said.
“The funds will allow the trading desk to move faster on debt deals, which in turn increases revenue.”
The company recently expanded its services portfolio to customers, now allowing them to buy bonds.
That came through a deal with a third party called NetWealth.
“We have also appointed seven highly experienced sales professionals from FIIG Securities to bring fixed income in all forms to IAM’s client base, focussing on our professionally advised clients, developing fixed income investment products and enabling any interested investor to access these yield-based returns and investments,” Mr Lechte said.
Just last week, we learned IAM’s funds under control climbed to $3.3 billion in Q1 of FY24.
Shares last traded at 10.5 cents.