Menu
Serko to raise $15M to support future growth

Serko to raise $15M to support future growth

Serko has inked a series of new channel deals to take it into international markets

Serko founders Bob Shaw (left) and Darrin Grafton (right) at the company's NZX listing event in 2014

Serko founders Bob Shaw (left) and Darrin Grafton (right) at the company's NZX listing event in 2014

NZX and ASX- listed travel management software vendor Serko is raising $15 million in an underwritten share placement to "provide greater flexibility to accelerate growth opportunities".

The Auckland-based business' shares were put in a trading halt this morning with a book-build for the placement to be executed tomorrow.

The placement is underwritten at a price of NZ$2.75 per share, reflecting a 3.2 per cent discount to the last traded price of NZ$2.84 on Monday.

Serko has inked a series of channel agreements to drive its growth, most recently with Orbit World Travel (House of Travel) as a new travel management company reseller in July.

ATPI UK is now operational with first transactions also occurring in July while North America expansion continues via Custom Travel Solutions and Voyages Travel Encore, both headquartered in Canada.

"We have also recently announced Flight Centre’s intention to extend its Serko offering to include Canada, United States and Mexico," the company said.

Certain NZX participants will be invited to participate in the book-build on behalf of their New Zealand and Australian retail shareholder clients, Serko said.

The Placement is expected to provide Serko with funds to bolster its working capital position and strengthen its balance sheet, giving the company greater flexibility to both accelerate organic growth opportunities and execute potential acquisitions.

These activities  include investments such as establishing sales and support functions in new international markets; accelerating product development and integration required to appeal to a wider range of travel management companies and corporate users; and providing funding capacity for potential acquisitions.

Serko recorded NZ$18.3 million in revenue for the year ended 31 March 2018 and a maiden profit of NZ1.8 million - the Placement is underwritten by Deutsche Craigs.

Disclosure: Rob O'Neill holds a small parcel of Serko shares.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Developmentresellerstartupsserkotravel management software

Events

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments