New Zealand Cloud based business software company, 9 Spokes, has closed a $25 million capital raise early following strong support from investors, including investment funds. The company is also set to list on the ASX on June 9.
Under the IPO, a total of 125 million new shares were issued at $0.20 per share and has raised $25 million. The 9 Spokes IPO did not incorporate any sell-down by pre-existing shareholders.
About 47 per cent of the shares on issue following the IPO will be subject to escrow for varying periods of time. The majority of shares held by directors and founders will be subject to escrow for 24 months from the date of listing.
9 Spokes co-founder and CEO, Mark Estall, said it decided to list on the ASX for two reasons - it is a good place to raise capital and provides channel partners with validation and security in terms of transparency, governance, and reporting.
Estall mentioned early stage New Zealand investors demonstrated their long-term support and have contributed a considerable amount towards the funding.
“The 9 Spokes IPO received a significant amount of institutional interest with more than 25 funds participating in the raise. Foster Stockbroking acted as Lead Manager to the IPO, with First New Zealand Capital as Corporate Adviser.
“From the start, 9 Spokes was established as a global business and has focused on delivering to SME markets around the world,” he said.
He also said that the company has already partnered with significant organisations, which provide a channel to the SME market, and will continue to engage new channel partners in new geographies and industry verticals.
“We’re now executing on that strategy and we’re delighted that so many of our first investors are with us on the journey. We are delighted to have new investors supporting our global growth strategy and to be working with great forward thinking partners such as Barclays Bank, Deloitte and Suncorp,” he added.
Estall added that 9 Spokes is targeting SMB owners globally that are rapidly adopting Cloud based business software.