Dicker Data is on the hunt for fresh capital to fund its 29,000sqm new distribution centre, among other things.
In an announcement to shareholders, the distributor said it intended to raise $55 million to partially fund the under-construction warehouse, plus its partner financial services arm.
The bulk of the money -- $50 million -- will come from an underwritten institutional placement, while a non-underwritten share purchase plan aims to bring an additional $5 million.
Of the funding, $30 million will be funnelled into the Kurnell-based distribution centre, which is due to be completed by the end of the year.
DIcker Data last year sold its former 15,000sqm centre and warehouse for $36 million.
Meanwhile, $10 million will be pooled into its financial services fund, which launched last year to help partners access technology investment funds without the need of third-party financial providers.
The distributor said it hoped to increase partner uptake of the fund, “creating long-term renewable contract-based revenues”.
The remaining $10 million will cover balance sheet and general operating costs, $2 million of this covering transaction fees.
“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,” CEO David Dicker said.
In announcing the fundraise, Dicker Data has entered a temporary trading halt.
Its capital hunt follows a recent successful fundraise by rival distributor Rhipe, which struck almost $34 million in investor capital in order to pursue further acquisitions and growth plans for its cloud software subscription business.