Thursday 13th July 2017
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Pushpay Holdings shares are trading higher this morning following the close of a $25 million bookbuild where they were sold at an 8.5 percent discount.
The mobile app developer announced the private placement yesterday in its first quarter update, though it didn't give details about the number of shares sold or the price. Disclosure notices published to the NZX today show shares were sold at $1.51 apiece, compared to the $1.65 they closed at on Tuesday, and 11 percent lower than the 90-day average of $1.697.
The stock, which was halted yesterday, has risen in early trading, up 2.4 percent to $1.69. Ord Minnett, one of the joint lead managers for the placement, has given it a target price of $2.74 and regards it as a strong buy, according to Reuters data.
The company yesterday also raised its annualised committed monthly revenue (ACMR) target to US$100 million, announced plans to list in the US within the next 36 months, and gave guidance of US$70 million in revenue for the 2018 financial year, more than double 2017's US$34 million.
Pushpay's app has gained traction in the US faith sector, where its services are used by 2 percent of the estimated 314,000 churches. Over the past year, the company has lifted its customer numbers and is getting more revenue from each customer. It had 7,128 customers as of June 30, up 59 percent from a year earlier, with average revenue per customer up to US$732 per month from US$511 per month in 2016.
Chief executive and co-founder Chris Heaslip said the US listing would increase liquidity and give the company better access to capital, while the $25 million raised would "enable Pushpay to invest more aggressively in its targeted account base and field sales strategy over the next 18 months."
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