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

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments