Leadcom Integrated Solutions Ltd. (AIM: LEAD) has raised ₤12 million ($22.5 million) in a secondary share issue on London’s Alternative Investment Market (AIM). The company issued 19,070,000 shares at ₤0.63 per share. Leadcom closed on Friday at ₤0.65 a share, reflecting a market cap of $121 million, before the money. The company previously held its IPO in April at price of ₤.32 per share, half the price in the new issue.
Altium Capital Limited Corporate Synergy plc and C.E. Unterberg, Towbin LLC were underwriters for the issue. Altium Capital and Corporate Synergy distributed shares worth a total of $12.6 million to UK investors while CE Unterberg Towbin distributed a further $9.9 million in shares to US investors. The sum raised by the share issue was the same as that raised by the Leadcom’s IPO in April.
In its announcement to AIM, Leadcom said the net proceeds of the share issue will be used to support the company’s initiatives to increase the size of contracts undertaken and the speed at which they are delivered. The company added that the issue would enable it to access more swiftly the perceived attractive returns available in the Indian market; to increase the company’s presence in developed economies such as Western Europe and the US. Leadcom’s activities focus primarily on emerging markets in countries such as Ecuador, Colombia, Brazil, Chile, Bolivia, Peru and Angola.
Leadcom CEO Arik Alcalay said, “I am delighted with the support we have received from a broad range of investors. The company continues to experience the successful growth trends announced at the time of the trading update released on March 31, 2006 and is confident that the results for the full year will reflect these trends.”
Leadcom is expected to post first quarter revenue of $30-31 million, with a gross profit margin of 11%. The company’s orders backlog for 2006 currently stands at $100 million, and its orders pipeline totals $280 million.
Published by Globes [online], Israel business news - www.globes.co.il - on May 28, 2006
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