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

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments