Plus500 Ltd. (AIM: PLUS) has raised $75 million in an IPO on London’s Alternative Investment Market (AIM), after the offering was oversubscribed. The company raised $25 million in the placement of new shares and shareholders (all or some of its founders) made $50 million in an offer to sell, at £1.15 per share, giving a market cap of $200 million, after money. The company had originally planned to raise $25 million and the shareholders the same amount. The dilution is 37%.
Trading in the share will begin on Wednesday, July 24.
Plus500 is an online platform for clients to trade contracts for difference (CFDs) in over 50 countries. It will use the net proceeds of the offering for marketing to increase brand awareness, enter new markets, and accelerate growth in existing ones; strengthen its balance sheet and capital base, finance acquisitions, and to maintain reserve capital surplus to its mandatory regulatory capital requirements.
Plus500 CEO Gal Haber said, "We are delighted with the strong level of support from institutional investors which is testament to our future prospects. The placing and subsequent admission to AIM will support our business as we seek to deliver on our growth plans. We believe that we have built an attractive and scalable business, underpinned by the group's proprietary technology and self-developed trading platform."
Published by Globes [online], Israel business news - www.globes-online.com - on July 21, 2013
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