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Serko Limited (NZX: SKO) launches NZ$85 million capital raise

Wednesday 24th November 2021

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Serko Limited (NZX/ASX:SKO) ("Serko") today announced it is conducting an equity raising of up to NZ$85 million to continue to execute on its global growth strategy.

Serko plans to raise the capital via the issuance of ordinary shares in Serko by way of a NZ$75 million fully underwritten placement ("Placement") and a NZ$10 million non-underwritten retail offer (“Retail Offer”) (together, the "Offer").

Darrin Grafton, CEO of Serko, said: “Despite the ongoing impacts of the COVID-19 pandemic on the travel industry, Serko has continued to maintain a strong market position in Australasia, invest in the Booking.com for Business global opportunity and increase market presence in North America. Serko is now poised to enter the next phase of growth – to scale up and progress our long-term strategy of becoming a global business travel marketplace.”

Serko has also today announced its unaudited financial results for the half year to 30 September 2021. Further details of the results were released to the NZX and ASX today.

DETAILS OF THE CAPITAL RAISE

Placement

The Placement will be conducted through a bookbuild in which institutional and other select investors in New Zealand, Australia, Hong Kong, United Kingdom, Switzerland and Singapore will be invited to participate by Craigs Investment Partners Limited and Ord Minnett Limited. A trading halt has been granted by NZX and ASX prior to the market opening today.

The Placement will be fully underwritten by Craigs Investment Partners Limited and Ord Minnett Limited. The Placement will raise gross proceeds of approximately NZ$75 million and is underwritten at a floor price of NZ$7.05 per share, which represents a 10.2% discount to the last close price of NZ$7.85 per share on 23 November 2021 and a discount of 11.0% to the 5-day VWAP of NZ$7.92 prior to announcement.

Retail Offer

Serko intends to make the Retail Offer to eligible existing Serko shareholders with a registered address in New Zealand or Australia, enabling them to subscribe for up to NZ$50,000 / A$46,500 of new Serko shares. The Retail Offer size is up to NZ$10 million (with Serko retaining the ability to accept oversubscriptions at its sole discretion to ensure that it has sufficient flexibility to cater for demand from its retail shareholder base). If scaling of the Retail Offer is required, it will be done with reference to the shareholders' existing holdings of Serko shares at the record date of 23 November 2021. The price of the Serko shares offered under the Retail Offer will be the lower of the Placement price or the five-day VWAP during the last five trading days prior to, and including, the Retail Offer closing date (being 14 December 2021).

Serko assesses that the Retail Offer will cater for a high majority of Serko’s non institutional shareholders, enabling them to participate and potentially increase their relative percentage holdings in Serko.

The final terms of the Retail Offer are expected to be announced in more detail on 30 November 2021. A Retail Offer Booklet, together with an application form, will be sent to eligible shareholders on 30 November 2021 and will be available on the website established for the Retail Offer on the same day. The closing date for applications by eligible shareholders is 14 December 2021.

Eligible shareholders wishing to acquire Serko shares under the Retail Offer will need to complete the application form or apply online via the website established for the Retail Offer. Eligible shareholders may choose to take up their entitlements in whole, in part, or not at all.

The Serko shares to be issued under both the Placement and Retail Offer will rank equally in all respects with Serko's existing ordinary shares.

Key dates relating to the Placement and Retail Offer are set out in the Appendix to this announcement.

Please see the links below for details

Capital Raising Market Announcement

Investor Presentation

Corporate Action Notice

Cleansing Notice

Source: Serko Limited



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